Why You Need Income Protection Insurance

  • Posted 15 Oct

Why You Need Income Protection Insurance

Even if it doesn’t feel like you bring home a lot of money, chances are good you’ve already amassed a good amount of funds in your savings.

Chances are even better that your ability to keep earning money in order to maintain the lifestyle that you’ve become used to is one of the most important things in your life.

So why wouldn’t you attempt to protect that aspect of yourself by taking out an insurance policy, in the same way you would for your life, health, car and other significant things?

Below are some things to consider when looking at Income Protection and whether it’s right for your situation.

What is Income Protection Insurance?

Much like life insurance or health insurance, income protection insurance is there to make sure you don’t lose the benefits your income provides, even if you somehow lose the ability to keep earning it.

Let’s look at an example: Say for instance that you are a truck driver and you earn a wage with health benefits and have enough saved up to cover occasional vacations and leisurely purchases. Now say that you can’t drive a truck anymore because of a physical disability you suffered.

Whether you were injured in an accident, developed a physical condition, or otherwise cannot work, income protection insurance will kick in to make sure that your previous levels of income remain in place until you are able to return back to work*.

*There are limits of how much an income protection policy will pay out – make sure you read the fine print and understand what is covered.

What About Disability Cover?

Disability cover is there to help those who can no longer work, if they develop some type of disability.

However, before trusting disability payments to be able to help you to live a life that you’re accustomed to, if you can no longer work, it’s important to take a good, hard look at the amount of money that comes with this type of cover.

The amount is often a lump sum payment and will depend on the level of cover you have in place, and even in the best of circumstances, these disability payments will only cover a portion of the income you’re earning right now, for a short period of time.

That’s why it’s a much better idea to be proactive by investing in income protection insurance before something happens and your working days hit a wall.

Get Insurance Quotes as Soon as Possible

It’s important to get income protection insurance in place as quickly as possible.

Once you put your name on the dotted line though, you will have agreed to the term of the entire policy, so it’s important not to rush into it.

Make sure to look around a bit first, and to get as many insurance quotes from as many different lenders as possible, so that you can get a clear idea of what a reasonable rate entails and what premium payments should be considered over-the-top.

Talk to friends and co-workers who have experience with income protection insurance and see whether or not your workplace or your existing insurance providers offer these policies.

It’s also important to check and see if certain policies offer better protection than others, so that at the end of the day you can relax and feel secure in the knowledge that all your bases are covered with regards to your income, lifestyle, as well as your financial security.

Don’t wait one more day! Talk to our experts today and get unbeatable income protection quotes to make sure that you’re covered before it’s too late.

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