What Is Income Protection Insurance?

Income protection insurance is one of the most important things that you can add as a resource for yourself and your family. Income protection is a key asset in the financial landscape of many families, and adding it into your own personal portfolio of financial tools and assets can be a game-changer in your life, providing a unique peace of mind that can be difficult to find anywhere else.

Understanding income protection is about more than simply researching the insurance industry as a whole. In order to better facilitate this learning experience, it’s a good idea to consider the entire scope of your personal finance needs and those of your family. Read on to discover what income protection insurance can do for your life and whether you should consider adding this coverage option to your insurance policy network or not.

Income protection starts with financial planning measures.

Families that rely on a single income are at increased risk in the modern world. Financial security is all about protecting your cash flow in order to maintain a stable home life. Of course, financial well-being isn’t the only thing that’s important when raising a family, but the unfortunate truth is that families that struggle with money are ones that struggle in other aspects of home life. Financial issues are the number one reason for fights between spouses, and money worries are a key feature in the stress that many individuals and heads of household feel on a routine basis.

Heading off any issues that may present themselves in your financial picture is a fantastic way to develop greater financial security and reduce stressors that can be introduced into your life without warning. In this time of increased stress over the coronavirus pandemic, families are at greater risk of lost wages and worse. Ensuring that your family will be protected in the event of lost time in the office is something that everyone should be considering given the present circumstances.

Income protection policies offer a form of disability insurance.

The primary feature of an income protection policy is the unique addition of disability insurance coverage that it provides. Income protection is designed to bridge the gap after an accident or illness that leaves you unable to perform the work that you rely on for your home’s income. As mentioned, this is a primary concern for any single-income family, but even those who bring in multiple paychecks each month are susceptible to a sudden financial shock. This is especially poignant in the current circumstances, where a COVID-19 infection would likely sideline both earners (or all earners in the case of a multifamily household or one in which adult children contribute to the household finances as well) for an extended period of time.

Getting ahead of these potential issues is something that smart consumers have prioritized in their financial lives, and the short-term disability protection that an income policy can provide admirably targets this gap in earning potential. The premiums that you will pay to this insurance policy will work in the event that you are unable to perform your job duties, covering up to 70% of your taxable income for the agreed-upon term of the policy.

In addition to medical insurance, social security disability benefits, life insurance, and long-term disability coverage, adding an income protection option is a great way to achieve greater financial security for you and your family. This protection is a great option for anyone lacking emergency funds or with high monthly bills, and it can be leveraged by anyone looking to add that extra layer of security. Consider adding this protection today in order to secure your future with greater certainty and peace of mind.