Things to Consider Before Buying Income Protection Insurance

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Curious about Income Protection Insurance? Whether you are single or have a family, this type of insurance is definitely something you should seriously consider.

Below, we simplify and breakdown what income protection insurance is. Whether you are completely new or have been researching income protection insurance, we have several tips to help guide you along your journey, including how to choose the best plan, how much protection you need, and how to choose the best life insurance broker. 

What Could Happen If You Do Not Have Income Protection

Remember: nothing in life is absolute. The most important thing to think about right away is protecting your most important financial asset: your income. What if you become seriously ill or injured? Would you have enough savings to pay your bills or your mortgage? Thankfully, that is what income protection insurance is for! 

An example may be if the sole breadwinner of the family falls sick and is unable to work. Even though the sole breadwinner may have savings set aside, there will still be monthly mortgage payments and other expenses to cover. If they were to fall ill, it would unfortunately also create stress in the home and add to financial liabilities. Who will pay for much-needed expenses, and who will compensate for the loss of income?

How Does It Work?

Income protection insurance is a financial safety net if you were unable to work due to serious illness or injury. Essentially, it is a backup plan to keep your family at ease and without a significant financial burden. 

This type of insurance usually pays between fifty and seventy percent of what you typically earned while working. Income protection insurance can cover a range of common illnesses and conditions, such as cancer, strokes and heart disease. Bear in mind that the standard illnesses included can vary from insurer to insurer. But ultimately, the conditions that your policy covers can be decided by you. It’s always wise to seek advice from an experienced broker.

Choose the Best Income Protection Plan

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Rest and recover while knowing you will have money for life’s expenses. First and foremost, make sure it is affordable. Know when payments arrive/waiting period, and be sure to review your pre-determined list. 

Understand your budget prior to and communicate that with your potential broker. That way, you will be able to choose the best income protection plan that is right for you. 

How Much Income Protection Do You Need

If you are thinking about securing your family’s financial future, now is as good a time as any to start. So, what are you waiting for? The earlier you plan the better, and you can start to build to your required amount for coverage. These are also details you will ultimately discuss with your life insurance broker. Your future advisor will also help you pick the best plan that is right for you and most affordable. 

Do note that income protection insurance will not protect against pre-existing or chronic conditions. 

Pick the Best Life Insurance Broker

Research the best family-focused life insurance brokers that are right for you, both personally and financially. Look for a broker for your income protection plan that is friendly, a great listener, and cares about your personal needs and concerns. 

If you want to ensure that you and your family are protected in case your or the main breadwinner in your household falls ill or gets injured, consider getting income protection insurance today. That way, you will have peace of mind and control in knowing that your family will be taken care of and relieved of any significant financial burden.

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