THE IMPORTANCE OF INCOME PROTECTION INSURANCE
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Published on: 22 March 2022
Last Updated on: 23 March 2022
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Many people are unfamiliar with income protection coverage. Moneysmart.gov defines it as insurance that covers part of your lost income if it is due to a disability of some kind. If you get extremely sick, get injured, or have a heart attack or stroke this policy will pay out money to help you survive.
If you have ever been off work, with no immediate income coming in, you know how stressful this can be. Life does not stop simply because you are unable to work.
Your bills do not pay themselves and your house will not simply continue to function. Money is a necessary part of life, and a sudden decrease, or stop, can be detrimental to you and your family.
1. Mortgage or Rent-
If you are at home with a disability your mortgage, or rent may fall beyond. Having to stress about being homeless is not something that you should have to go through at this time. This policy will pay out the amount needed to cover these expenses.
2. Debt-
Your other bills will continue to come in as well. Utilities, garbage, taxes, etc. do not stop just because you are disabled. This insurance will cover the bills to make sure that you can stay on top of all your current debt.
3. Recovery-
With an insurance policy of this type, you can concentrate on getting better. Your disability is something that you need to focus on so you can get through the healing process quickly. Recovery goes faster if you do not have to stress about the everyday payments that you need to make.
4. Quality of Life-
You have worked your tail off to get to the quality of life that you want. A disability will drastically affect that negatively. Income Protection Insurance will ease this by paying out money to you to not only pay the bills but to be able to maintain your current way of life.
5. Family-
Family ease of mind is always important. The stress of losing an income can cause upheaval and depression. It is not necessary to have this problem, though. A policy designed for you can help keep family reassurance.
If you pay on a protection policy such as this, at the end of the year you can claim it on taxes. You will get a tax break for paying on this policy all year. It also helps in cases where you do not get to claim worker’s compensation. For instance, if you get sick due to medical reasons workers comp will not cover any expenses or reimburse you for time lost.
An Asteron Life agent recently claimed that 28% of claims on these types of policies are due to accidents. They occur when you least expect it. At home, on the way to work, or even at work, things can happen that make you unable to provide an income due to a disability.
Having an insurance policy that will cover basic expenses while you recover is important to prevent your life from crashing down around you.
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