Income Protection Insurance, What is it and why should I have it?

We all work hard to earn a living and provide for our families. However, life is unpredictable, and we cannot always anticipate what may happen in the future. That is why having an income protection insurance policy can give you peace of mind, knowing that you and your loved ones are financially protected in the event of an unexpected illness or injury that prevents you from working.

What is Income Protection Insurance?

Income protection insurance is a type of insurance policy that provides you with a regular income if you are unable to work due to illness, injury, or disability. This insurance policy is designed to replace your lost income, so you can continue to pay your bills and maintain your standard of living while you recover.

Income protection insurance policies typically have a waiting period before payments begin, usually 30, 60, or 90 days, and they will continue to pay until you can return to work or reach the end of the policy term.

Why Should You Have Income Protection Insurance?

Regardless of your age, income protection insurance can provide you with financial security during a difficult time. However, the reasons for having this type of insurance policy may vary depending on your age group.

18-25 Years

At this age, you may be just starting out in your career, and you may not have a significant amount of savings or investments. If you were to become unable to work due to illness or injury, you would have no income to fall back on. Income protection insurance can provide you with the financial support you need to cover your living expenses while you recover.

25-40 Years

During this age range, you may be starting a family, purchasing a home, and accumulating debt. You are also likely to have a higher income than when you were in your early twenties, which means that you have more financial obligations to meet. If you were to suffer an illness or injury that prevents you from working, income protection insurance can ensure that you can continue to meet your financial obligations, including your mortgage payments and other expenses.

40-50 Years

At this stage of your life, you may have more financial responsibilities, including caring for your children, paying for their education, and saving for your retirement. You may also have accumulated significant assets, such as a home or investment properties. If you were to suffer an illness or injury that prevents you from working, income protection insurance can help you maintain your standard of living and ensure that you can continue to meet your financial obligations, including your retirement savings.

50 Years and Above

At this age, you may be nearing retirement, and you may have accumulated significant savings and investments. However, you may still have financial obligations, such as paying off your mortgage or caring for aging parents. If you were to suffer an illness or injury that prevents you from working, income protection insurance can provide you with the financial support you need to cover your living expenses and ensure that you can maintain your standard of living.

In conclusion, income protection insurance is an important type of insurance policy that can provide you with financial security in the event of an unexpected illness or injury. Regardless of your age, having income protection insurance can give you peace of mind, knowing that you and your loved ones are financially protected during a difficult time.

Call to discuss!