Income Insurance
Many people have been insuring almost all of their valuables, like their homes and cars. The most important financial asset of a person is his ability to work and bring in an income, yet not many have insured their income. How are you ever going to pay those due bills and feed your family especially at times when you get sick and is unable to do your work?
For some fortunate people they can still support their family even if they are unable to work for a few days because they might have savings and other earning assets. Another reason is that maybe included in their superannuation; there is a continuance of payment of income. Even if they are not working due to injury or sickness or if they acquired an injury from/because of their work, they are protected by a WorkCover.
Unfortunately many will not gain any income if they do not work. You may have benefits from the social security but the question is- will it be enough for you and your family’s needs?
Income insurance can provide you with protection and security if you are rendered unable to work due to injury or sickness. Every month usually, it will pay you a certain amount of money, although, you need to think about considering to avail of an income insurance, whether you really need it or not. If ever you do need income insurance you need to make sure that you get the amount just right to cover the price.
You need to consider protecting your income. The choice for you to have or not to have an income insurance will all depend on the status of your present financial life and what it will likely be in the future. Also it will depend on your remuneration conditions and your employment, your occupation, the level of your earning assets and your superannuation scheme.
There are some people who are self employed. These people might be putting themselves at risk and their income by not having a protection on as a back up plan. What will be available to you if you are unable to work?
There are several options of policies out there that a person can choose from. An example is the indemnity policy otherwise called agreed-value policy. One advantage of this certain policy is that you know what exactly you will receive even if your income changes. Only that this policy will cost you more, a disadvantage.
Another policy is pay for extras or basic policy. This will provide you with your income only. It will also include nursing payments or receiving payments. These payments will be given to you immediately. You will not have to wait for months or even years before the paying begin.
Income insurance will surely protect your financial state, no matter how constrained or unconstrained it may be. It will give you financial support whenever you can’t go to work due to illness and injuries. You will still be receiving something even if you are rendered temporarily disabled.
by Maria-Goldsmith 19 years ago