Why Income Protection Insurance is a Must

You work for a living. You work so you can pay the mortgage, run a car, put the kids in school and meet all those other day to day expenses.

But what if you couldn’t work? What if the income stopped?

It won’t happen, will it! But it just might.

Unfortunately, it does happen to some people and there is the chance that you just might fall into that category through no fault of your own. You may get hit by the proverbial bus or you may suffer a severe and debilitating disease which takes you out of the workforce for some time. There are plenty of statistics to show that the chances of something happening to you to prevent you working and earning an income for a period are pretty high.

In that instance – who will pay the bills? The sad fact is that most people automatically assume that they will be ‘right’ either by not suffering a health or accident mishap or that someone else will help them out financially.

For example, Medicare and your health insurance will only pay some of your health bills. You can’t always depend on the family and friends to pay the bills and going into debt can be uncertain. Also, you never want to sell the family home just to keep paying the other bills. It is about maintaining a standard of living.

Income Protection Cover
Well, income protection can help. With income protection, you can receive a regular income of up to 75% of your pre-event income until you go back to work. For many, that can mean a short term, and for others, it can be almost a lifetime.

Income Protection Insurance is a Must
That is why income protection insurance is important for all age groups. Even for the person first starting out at work. They may work until they retire or they may only work one day. If an accident happens at the start of your working life, an income protection insurance policy can help you through the next stages.

It is all about protecting your greatest asset – your ability to earn an income. Most people overlook this fact and immediately see their key assets as being a house or car. But you can’t maintain either if the income stream stops.

How much Income Protection Insurance do you need?
The most frequently asked question therefore is how much income protection insurance do I need.

This is generally assumed to be sufficient to pay the mortgage and other debts. But it is much more than that. Not having income protection insurance is only part of the underinsurance gap. Not having sufficient protection to maintain a lifestyle is a big part of the ‘gap’.

It’s an Investment
Income protection insurance shouldn’t be seen as a cost. It really is an investment. If you don’t use it then you lose. If you are unfortunate to suffer a health setback and you do have income protection insurance, then you are financially ahead.

Find the right Income Protection Insurance policy for you
If you need money to cover your expenses during extended leave from work due to sickness or injury, you can bridge the gap with Income Protection Insurance. The funds from income protection cover can help pay for bills and living expenses. Make sure you compare income protection quotes properly and seek financial advice.