Last Updated on April 15, 2021
The first thing you must be asking yourself: is income protection insurance worth it? We don’t really know the worth of insurances in general until the times of crisis when unpredicted and unfortunate events take place in our lives or those of our loved ones. Unfortunately, time machines are not an option to use and go back in time to buy a health policy or income protection insurance. Hence, you should be aware of the possibilities surrounding you and be ready to face problems when they appear, especially the financial ones! Income protection insurance is not the same as your current health insurance policy. You may not be familiar with the income protection option, so you must be wondering: what is income protection insurance? What does it cover? Do I really need it, and when? How different is it from the policy I have already? What are the types of income protection insurances? Don’t you even worry; here are the answers to your questions and others.
1. What Is Income Protection Insurance?
In a nutshell, income protection insurance protects your income. Basically, you must already have your expensive and valuable assets and possessions insured, such as your house, car, or even just a piece of jewelry that means so much to you. But what about your income? Have you ever thought of it? Ensuring your main source of cash? Well, that’s what income protection insurance does; it covers your income in case you become unable to make it. In other words, this insurance financially covers you, personally, in cases where you can’t earn an income for some reason. So, in your opinion, is income protection insurance worth it? Don’t know yet? Keep reading!
2. What Does Income Protection Insurance Cover?
Now you know what income protection insurance is, but when does it become worth it
? Think of an unfortunate scenario: you suddenly get seriously ill and need various medical procedures to recover. Your health insurance is paying your doctor and hospital bills. Sounds good, right? However, does your daily life, for a long or short period, consist of nothing other than the doctor and drug bills? No, you pay for other things such as groceries, goods, phone and internet bills, gas, cable, rent, mortgage.. Etc. If your illness makes you unable to work, how would you pay for those? That’s when you need income protection insurance!