Income Protection insurance is a type of insurance which safeguards the income of a person. According to this policy, if an individual is incapacitated due to an illness or accident, the insurer will pay benefits to the insured. Basically, if you are unable to work due to a disease or due to an accident, the insurance company will pay you the benefits if you have income protection insurance.
Life is uncertain, and accidents happen. Diseases can strike at any time, leaving you and the people who depend on you vulnerable. This insurance policy is very nice to fall back on in case something unfortunate happens. Even if you do not have any children or family members to support, you should get this insurance policy, especially if you are self-employed or employed with no sick leave.
There are many benefits to having income protection insurance. Below mentioned are some of these benefits.
There are many custom options available in the income insurance policy. You can pay a higher premium and claim the benefits quicker. You can also opt for a stepped-up policy, which makes the premiums cheaper when you are younger and they keep increasing as you grow in age. You can also opt for an option called Family Care Cover. This allows parents whose child has suffered through an accident to take care of them full time, and receive the benefits of the policy. There are many more such options available to you if you choose to get this insurance policy.
- Support the people who depend on you
If you are the bread earner of the family, you need to make sure that in case something happens to you, your family is not left completely unsupported. This policy allows getting around 75% of the salary in case you are incapacitated due to illness or accident. This is a sure shot way to ensure that no matter what happens, at least a steady flow of income will come through to provide the care that you and your family would need.
- Add additional benefits
There are many additional benefits to getting income protection insurance. The most important one is the tax benefits. If you pay the premium for your income protection insurance directly, the premium paid by you is tax-deductible. Also, making a claim for income protection insurance is very easy and straightforward. It may also cover your redundancy. This means that if you wish to change your job or look g=for new opportunities, the policy may give you a redundancy benefit for a fixed period of time, say three months or so.
- Helps return your life to normal quicker
Although having an accident or being struck down with a disease warrants a change in your life, having income protection insurance ensures that your family won’t have to go through the same. You won’t have to take a mortgage or sell your house. Your children won’t have to change schools, or your spouse won’t need to work an extra job. This …