As you all know, every one of us live in a world full of uncertainties where nothing can be predicted beforehand. Today we may be well settled with a decent monthly salary and life may seem pretty cool as you have a steady monthly income to support your family. But no one knows what tomorrow holds. What if you get injured or succumb to a life threatening illness making you unfit to work tomorrow? Who will pay the bills in such a situation? Who will take care of your loved ones and their needs? How you will find money to treat yourself? This is exactly where income protection insurance plans come in.
To be exact, what you mean by Income Protection Insurance ? Income Protection Insurance (IPI) or salary continuance insurance is basically an insurance policy that pays the policyholder a fixed amount of income monthly or weekly as the case may be if by chance they are not able to work due to accidents or other serious illnesses. There is no doubt that in today’s time of financial uncertainties; it is certainly a smart move to have an alternative source of income such as an Income Protection Insurance in case of emergencies which can cover your income against unforeseen unemployment.
However, before buying such a policy, you need to understand certain important factors concerning them.
Typically, a good income protection policy pays out once 30 days have passed during which period a policyholder is unable to work and generate income. It will continue to do so until the policyholder is either able to return to work again or he gets past the age of 65.
The main advantages of the income insurance plans over other insurance policies are outlined below:
IPI provides the most sought after peace of mind to the policyholder as it will offer financial security to them in the event of unemployment resulting from possible illness or injuries either weekly or monthly.Such payments are done until the policyholder is fit to work again or until his retirement or the policy contract term ends.
The payments paid through IPI are exempted from income tax and National Insurance contributions.If the policyholder pays the premium without any fail, the insurance company does not have any right to cancel or refuse the renewal request of the policy.
Apart from these, these policies also provide additional benefits which are usually offered for no extra cost that includes cosmetic, death benefits or other surgery and transplant benefits.
There are various online insurance companies that extend income protection insurance. If you want to find the best insurance plan available, it’s always recommended that you compare income protection insurance rates along with their benefits and other details.
Also, make sure to select an income protection policy with the optimum level of cover according to your situation. Also make sure you are well aware of this insurance’s limitation regarding when, how and for how long the coverage exists. Do not hesitate to ask opinions to your friends and families who have purchased such an insurance earlier. This will make you informed enough to select the best income protection insurance for you.