Written by Reginald Chan on November 25, 2021

How Does Income Protection Insurance Help You?

Do you have a financial plan in place? One that will help protect your income and assets should the unthinkable happen? If not, then it's time to take a closer look at income protection insurance.

Income protection insurance provides an important safety net for many families striving to achieve their financial goals. This article gives you some of the most common reasons why people purchase income protection insurance and how it can make a difference for you.

Why Would You Need Income Protection Insurance?

Income protection insurance helps replace a portion of your income should you become unable to work due to an accident or illness. This can be particularly important if there is only one payment source within the household since it will stop the financial hardships that often result when someone is forced to stop working.

Income Protection Insurance Options

Income protection insurance is different from other life insurance types because it has a shorter term and usually pays out more minor benefits. However, these benefits can be crucial for families who depend on income to pay their bills and live day-to-day.

Nowadays, it's not cumbersome to check the alternatives available since there are online platforms you can approach. They make it seamless to compare various income protection insurance quotes.

This is significant if you want a choice which you won't regret. However, you ought to take the time to go through all the options available.

The standard term of income protection insurance is approximately two years. At the end of this time frame, you will need to apply for another policy if you wish to continue receiving the same level of coverage (although you can generally switch to a different policy with the same provider).

How Does Income Protection Insurance Benefit You?

Income protection insurance can often be the difference between a family keeping their financial house in order and falling behind. In addition, it offers you several distinct benefits:

  • Protection from the Loss of Income - This is one of the biggest reasons why income protection insurance is considered so important by many families. If there's only one income within the family, this person must continue to receive a steady income if they cannot work due to illness or injury.
  • Provides a Regular Deduction from Your Savings - How many months would you like your income protection insurance policy to pay for when you're unable to work due to injury or illness? While this is a question that can vary from case to case, income protection insurance provides a monthly benefit that will help keep the family afloat if faced with losing an income.
  • Provides Guidance in Managing Assets and Expenses - It is essential to understand how long your income protection insurance will provide benefits when it comes to providing for your family.
  • Protects Your Business - One of the biggest fears many business owners have is that they will be unable to work due to illness or injury, and their place of business will fail. For example, what would happen if you became seriously ill and had to stop working for a prolonged period? How would your bills be paid? Would you still be able to cover your family's living expenses?
  • Employee Benefits - One of the best ways employees can be protected is by purchasing income protection insurance from their employer. In addition, when buying this type of employee benefit, you can often add a savings feature that will help reduce your premium cost.

As you can see, income protection insurance is a critical thing to consider for your family. If you're interested in finding out more about this type of coverage and its benefits or if you would like a free quote on how much it will cost for you, there are online platforms you can surf through.

Article written by Reginald Chan
A meticulous entrepreneur by nature and a serial entrepreneur. Founded a few awesome startups including Marketing Lancers, WP Maven and TheMarketingHuddle.com. Reginald is a sought-after success coach, digital marketing consultant and TEDx speaker from Asia. Currently, he teaches others how to make money online for free.

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