Like various other valuable assets, income is also required to be protected. It is valuable than any other assets say like car, phone and so on, because it is the source of all these. Therefore, it is essential to have Income Protection insurance. It is a way to protect your income in various cases especially, when one is unable to work due to illness or injury. In such cases it provides financial mean to fulfil the requirement of self and the family.
It is important to understand the need of such policies. It can also be defined as the pre or partial disability income. Mode of income requires input from employee. Just consider if one is sick or injured how he will manage to go to work or run a business and if so, he will definitely not receive his income. However, financial requirement of the family will not terminate with the income; one has to pay for rent, groceries, medical bills and various other house hold expenses. Therefore, it is brilliant to protect income to deal with such unforeseen circumstances. It offers various benefits to the policyholder and which is why it is so important to protect income.
Benefits of Income Protection:
- It ensures fixed monthly income or compensation even when somebody is ill or injured hence, offers financial security.
- It also offers accommodation, rehabilitation, and various other miscellaneous benefits to the policyholder.
- Few other perks like payment for transplant surgery are provided as add-on benefits on the payment of nominal amount.
- Income protection insurance also offers peace of mind to the insurer.
- Coverage amount is paid in very short time from the date of claim without any deduction in the promised amount.
- Payment of premium is easy and convenient and therefore, it is user-friendly.
- Such income is free of taxation.
Information of Insurance and its cover:
To purchase an insurance cover, one must know the eligibility criteria, mode of payment and various other benefits of it. Premium and benefits both depends on the type of plan you choose. Comparing different policies can give you a better view of companies and policies. Discovering a least expensive plan is not smart but looking for a comprehensive plan that offers ancillary benefits is really important. Duration of Income protection insurance starts from 7 days and goes up to several years; longer the period cheaper the premium is. It pays off 75% of current income of the policyholder. Talk to your financial advisor before choosing any policy. They help to understand the definition of disability, injury and illness described by different insurance companies. They also assist to get clear knowledge on the mentioned terms and condition to avoid any fraud or inconvenience in near future. Do not ever choose a company or policy that looks impressive but only statistically, look for the one which is useful in terms of benefits. Plan for a secure future and get the best available policy.