Some Facts About Income Protection Insurance

What if suddenly something happens that stops you from working and receiving your regular income? Since, for most people, time = money, it means you won’t have the available time to go to work and thus, no money!

You’ve most probably heard about income protection insurance. This is a really good solution to the above problem.

There are many companies that provide this type of insurance. So you’ll need to do a research, depending on the area where you live.

Most companies won’t provide you a replacement for your income while sickness that requires short time for recovery but only for illnesses where you need really long time in order to recover. I guess there’s sort of balance there, where companies that provide short-term income replacement offer smaller long-term income replacement and the other way around. So that’s why I think it’s important to do a careful research.

Is income protection insurance for you? Well, you might come with different excuses, such as:

– I am too young for any accident to happen to me
– The probability is very small

and so on. If you can really allow this type of insurance, I say, get it. Because you never know. Yes, the probability may be low but, as some people say, fate knows no age limit.

In case you have a short term disability, your income is usually covered up to 80 percent. If you have a long term disability, then your income is covered up to 60 percent maximum.

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