For many individuals, income protection insurance tends to feel like something that’s nice to have, but isn’t really essential. But why are so many so quick to overlook it, putting car, home, or life insurance first? Today, we are going to look into whether or not income protection is worth investing in. After all, without our income, we aren’t going to get very far in life.
If you’re unsure what income protection insurance is, it is a policy designed to replace a significant portion of your salary if you are ever unable to work due to an accident or illness. Unlike most insurance policies, it pays regular monthly instalments rather than one lump sum, ensuring you can always keep up with your financial obligations.
How to Know Whether it is Right for You
Of course, not everyone will need income protection insurance, but for others, it is an absolute necessity. If you are unsure whether it is right for you, here are some examples of scenarios where it could come in extremely useful:
- If you rely solely on your income to meet all financial obligations.
- If you don’t have substantial savings yet.
- If your family couldn’t cope without your salary for six months or more.
- If your job doesn’t provide the level of sick leave you would need to recover from a serious illness or accident.
If you fit into any of the categories above or can think of any other situation where you would struggle to meet financial responsibilities without your income, then we would highly recommend taking a look at policies straight away. Unfortunately, we never know what life is going to throw at us, but we can be prepared. Regardless of occupation, unexpected illness or unfortunate accidents can get us all.
What Income Protection Can do When You get it Right
Of course, income protection insurance sounds like it would be perfect for many people, but it is also important to remember to get your policy right. Thankfully, it is often fully customisable, allowing you to tailor it to meet your specific needs. Individuals can choose their own coverage amount of up to 70%; they are able to select how long they wait until the benefit kicks in, decide how long they want the benefit for, and more. This means that you can maintain peace of mind while significantly saving on your premiums at the same time. With the right policy, you can rest assured that your finances are taken care of.
An Overview of Income Protection Insurance
If you have ever overlooked income protection insurance, it might be worth looking over your current situation to see if it is something you might benefit from if you ever need it. This policy is designed to help you maintain your standard of living while keeping up with all your financial responsibilities if you are ever unable to work due to unforeseen circumstances. However, always check the terms and conditions of any policy carefully to ensure it is the right one for you.
