Most of us dedicate our lives to achieving absolute financial security. We work hard to provide for our family, while also trying to generate wealth to ensure a comfortable retirement. You probably have an investment portfolio with specific investment goals, yet life is uncertain and it can throw you a curveball; imagine what would happen if, for some reason, you were unable to work for 1 year! The process of ascertaining such peace of mind can take several years, so it is essential that our hard work never becomes undone.
Income Protection Insurance
One of the most crucial aspects of successful financial planning is income protection insurance. We never know what lies around the corner, so the best thing we can do is be prepared. Throughout this article, we will look into income protection and how it can help you achieve ultimate peace of mind. Everyone is prone to facing challenging times at some point throughout their lives, but income protection insurance can ensure we never face financial hardship. If you talk to an established insurance broker about such cover, they can find a policy that suits your lifestyle
What Income Protection Insurance Gives Us
Income protection insurance works by substituting a substantial percentage of our income if we are unable to work due to illness or injury. When taking out a policy, you can choose how much coverage you have, ensuring you will always be able to meet your financial obligations. If you are ever unable to work, this incredible policy will ensure you can keep up with mortgage payments, bills, and all your daily living costs. Additionally, some income protection insurance policies also offer rehabilitation and assistance in returning to work, supporting the recovery process in every way.
Protect Your Family
Accident or illness can visit at any time and if you are suddenly sidelined for 6 months due to a complicated disease, this can cause havoc with your finances. When you are looking at income protection policies, it is important to talk to an independent insurance broker, as they are not tied to a single provider’s products, rather they represent many insurers and can tailor the policy to suit the client.
How to Ensure Your Income Protection Insurance Policy is Right for You
Like taking out any insurance policy, it is essential to make sure you’re choosing the right one. Start by Googling established insurance brokers near me and browse a few websites, looking for income protection cover. There are many companies that offer a diverse range of insurance cover, including life insurance, health insurance, house content insurance and personal possession cover. Here is what you should be considering to ensure your income protection insurance policy fully aligns with your needs.
The Benefit Period – When taking out your policy, you will be able to decide on the benefit period that suits you. This is the length of time you will receive payments if you are ever unable to work. Everyone will have their preferences and requirements, so assess all financial obligations, assets, and savings before making this decision. The insurer’s website should have a search function to help you find the right package and you can extend the cover to as many years as you wish if you approach a broker.
The Waiting Period – This is another adjustable feature of most income protection insurance policies. It is the length of time it will take for the policy to start paying out if you are unable to work. If you have substantial savings or a fully paid mortgage, you might want to opt for a more extended waiting period to save on your premiums. It is all about creating a balance between benefits and premiums; make sure that you read the terms and conditions and fully understand what is included and what is not.
Exclusions and Coverage – Before taking out a policy, carefully review the fine print. Doing this will ensure that the exclusions of your policy will be suited to your individual needs. Additionally, carefully assess your financial situation and opt for an appropriate amount of coverage. Too much can result in higher premiums, whereas too little might not support you in times of need.
Final Thoughts
One of the smartest investments we can make is income protection insurance. Nothing is more devastating than an accident or illness preventing us from working and setting back all our hard work. With income protection, you will always have something to fall back on in difficult times, so this flexible and adjustable insurance policy should be considered an invaluable asset.
Start with an online search to find leading insurance companies and browse their packages until you find one that best suits your needs.
