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Income Protection Insurance - What Does This Entail?
Just as you can protect your car, house and life with an insurance, you can also safeguard your income. Your monthly earnings may not flow smoothly when you are out of employment for various reasons. In times of accident, unemployment, redundancy, sickness you will be out of employment and cannot ensure your monthly earnings. With such uncertainty, it would be difficult to eke out a living. In order to avert such financial disaster, you must understand what the income protection policy entails.
Income protection insurance covers:
It is a comprehensive cover which helps you meet all your major monthly financial obligations. Credit card cover, mortgage or other secured loan payment, grocery bills, store card payment, electricity, mobile etc.
With this, you will be sure of your income earned despite of being out of employment.
Offers you financial relief, when you are in distress and lets you relax in peace. If you are bed ridden then it is unlikely that you can work and hence this policy will take care of you in these situations.
It will protect your monthly earnings, when your employer has stopped ...
... paying you. You can make a claim under this policy only if your employer pays no compensation to you.
There is no restriction on how you use the amount paid out to you by the insurance company. Usually, it is 60 to 70% of your monthly earnings with which you can pay off your mortgage amount and take care of your other financial needs.
It covers nearly any medical conditions that prevent the policyholder from working. This is in contrast to critical illness cover (which is another form of long-term disability insurance) which only pays out if the policyholder suffers an illness or injury specified in the policy document. Take advantage of your policy and safe guard your monthly earnings.
Kirthy Shetty, Expert author, platinum status. Get all your free tips related to: Income Protection Insurance
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