You are a regular middle-class person who earns a monthly income with your regular day job. Your company gives you benefits such as paid sick and vacation leaves, health insurance, and other business benefits that you can enjoy.
We all are aware that accidents happen. What if you suddenly get into an accident or a terrible illness making you unable to work anymore? We do not want that to happen, of course. However, in the case that these things might happen, what then are you going to do? What if you cannot work anymore? How can you pay for your monthly bills and other daily expenses?
That’s where Life’s Great income protection insurance comes in. Have your income protected in case of any sudden events that make you unable to work.
What Is Income Protection Insurance?
Income protection insurance, also known as IP insurance, gives you protection and keeps you insured when you are unable to work and cannot gain your regular income either because of sickness, accident, or disability. This insurance is also called permanent health insurance.
Though the insurance won’t let you get the same income you previously had, it does pay you up to 70% of your gross income. This type of insurance helps you cope with your finances even if you are incapable of working. One good thing about this insurance is it is tax-free. So you will get up to 70% of your previous monthly income before tax.
Doesn’t that make you feel secure? It is a compelling reason to apply for a loss of income coverage ASAP.
You do need to be aware that when you get ill or disabled, you must claim your insurance coverage right away. There is still a waiting period, and usually, you can start your pay-off two years after. This is because, on the first months that you are not able to work, your company may still cover you. Also, you can claim a statutory sick pay which is covered for about six months so that you won’t be needing the money yet.
There are two options for this type of coverage which you can claim; The short-term IP and long-term IP insurance.
Short Term IP insurance gives you payouts if you are unable to work temporarily. For example, because of a temporary long term illness, you are unable to work for one year. Then you can claim short-term income protection insurance to insure you from your loss of income.
Long term IP on the other hand, gives you benefits and covers you if your illness renders you unable to work anymore.
In times of need who will you lean on? You might have your company, family, and friends who can give you financial assistance when you are unable to work and sustain your expenses, but that might only be for a short period. You never know when an accident will strike, so take care of yourself, and give yourself a sense of security with IP coverage today.