Income Protection Insurance For Executives
Job instability is a fact of life. For the young worker, new to the marketplace, it is unpleasant when an employer belly's up and goes under and they have to hit the job market again. However, but for many older, established workers, especially executives and their families, downsizing is a real catastrophe. Employment in today's world does not come with the security enjoyed by workers in bygone days; it is a fickle at best lion's den. One way to protect yourself is with income protection insurance.
It is especially difficult for highly skilled, tope wage earners to find comparable jobs. In today's job market, both your experience and prior salary work against you, not to mention any hint of age. A highly skilled well paid employee can be replaced, in many cases, by two or three unskilled but motivated workers who will try to make their mark on the job. Expertise is not necessarily a positive feature in today's job market. Cost effectiveness demands that positions be filled with people who will work cheaply and many extra hours to get on the right page.
If you become involuntarily unemployed you may be eligible for the small, limited term benefits allowed by state of federal unemployment plans. However, income protection insurance will provide you with a comparable salary to the one you are accustomed to earn for the entire period of involuntary unemployment.
Both age and being at the top of the salary scale are reasons for executives to protect themselves by purchasing income protection insurance. If you are diligent and good enough at your job to have risen to a good salary together with perks, enjoy it briefly but watch your back. If you are not absolutely irreplaceable, you probably be urged to take early retirement or just let go. Your employer can, and will use your salary to hire several motivated people who will work for far less than the salary you have earned over a lifetime.
If you have a family or dependents, especially if you are the sole breadwinner, it is important that you take advantage of income protection insurance. Worker's compensation plans are in place to protect employees injured on the job or who suffer job related injury or illness. However, executives rarely have these types of claims and this coverage is usually not relevant. However, if you become ill for any reason and are unable to work, income protection insurance will pay your salary, or a portion thereof, for the entire time of your incapacity.
by Sally.Anderson 19 years ago