What is Income Protection Insurance?
If someone were to fall ill or suffer any type of injury that would prevent them from going back to work for a lengthy period of time, income protection insurance would be ideal to have. It generally covers up to 75% of the monthly income a person brings in. There are different maximum benefit packages that are available, but clearly, the longer the benefit package lasts the longer the insurance will payoff in case of an accident.
Why Choose Income Protection Insurance?
A question that frequently gets asked is, “Why do I need income protection insurance if I already have life insurance?” Honestly, it would be ideal to get both. Life insurance benefits those closest to an individual in case the individual suddenly dies. It can help pay for collected debt and funeral costs so the family and loved ones aren’t left with the burden of paying off the deceased’s expenses.
Income protection insurance benefits someone who has lost the ability to earn a living. It allows for sick/injured people to keep their independence and continue making car, loan, and rent/mortgage payments as well as pay for other necessary expenses. Receiving government benefits can be a long process, and the money coming in from that is usually not enough to keep up with the same lifestyle habits.