Taking measures to secure your income amidst uncertainties is as vital as insuring tangible assets.
People frequently insure assets like pets, homes, and cars, yet often overlook safeguarding their income against illness or injury. In today’s world, protecting one’s income is a crucial yet often neglected aspect of financial security.
Income Protection Insurance ensures that a portion of your regular earnings is provided to you if you are unable to work due to health issues or accidental injuries. This financial support kicks in after a predetermined time frame known as the deferred period.
The deferred period represents the interval between the first day of absence from work and the start of benefit payments. Opting for a longer deferred period can lower insurance premiums, as you can align the start of benefits with any sick pay provided by your employer. By doing so, you can effectively reduce costs by choosing when the benefits should commence.
Those who are self-employed or without employer-sponsored sick pay are particularly likely to benefit from Income Protection Insurance. However, navigating the options can be daunting for many. To ensure the best possible coverage, it is essential to assess individual protection needs and select the appropriate plan accordingly.
Income protection policies that are not connected to any investment have no cash surrender value at any point and will terminate upon reaching the end of the designated period. Should you discontinue your premium payments, your coverage could be discontinued.
