Income protection- protecting you when you are unable to work

Income Protection- Protecting You When You Are Unable To Work

Just as it is important to buy home insurance and motor insurance, it is also important to buy income protection. You can never know what is going to happen in future. You can become sick or incapacitated and be unable to work. If you are unable to work, it means that you will not be able to get your monthly salary. Under such circumstances, it will be hard to meet your everyday expenses.

Provides Regular Salary

   Wage coverage policy is designed to cover you in such situations. It provides you with a regular salary till the time you are able to return to work. Income protection coverage will help you take care of your everyday needs like food, gas, school fees, clothing, and other expenditures.

   One might ask — Why do I need wage coverage policy when I can avail of paid sick leave or other government unemployment benefits? The fact is that many employers make it very hard for one to avail of paid sick leave benefits. Moreover, it takes time to secure unemployment benefits from the government.

Deferment Period

   Wage coverage policy, on the other hand, provides coverage that you need and for as long as you need. When taking an income protection plan, you will notice that there is a deferment period added in the plan. Deferment period simply refers to the period when you have got off work and you are not covered by a wage coverage plan. The policy holder has to make his/her own arrangements during this period.

   Policy holder is given the option of choosing the deferment period. The choice should be made by first analyzing how long you will be able to live off your savings. This will ensure that the income protection plan will start at the right time. In other words, you will not have to worry about money to take care of your needs.

A Better Option

   Wage coverage policy is a better option than paid sick leave or other government unemployment policies, because it is easy to avail of benefits under the plan. When you make a claim on the plan, the company will seek a medical confirmation regarding your physical condition. Once they can confirm that you are medically unfit to return to work, your claim will be accepted.

   You will stop receiving the benefits once you get back to work. Most income protection plans do not limit the amount of benefits you can receive; however, the policy holder has to start making payments on the plan once he/she has got back to work.

   Wage coverage policy is a better option than other available options because policy holder can link his/her benefits to the current inflation situation. This simply means that the benefits that the policy holder will receive will increase over the period. This will ensure that you will have sufficient funds at any given point.

   When shopping for wage coverage policy, it is important to get quotes from several companies. Compare the income protection plans offered by different companies. Compare the cost of processing the plan. Will it enable you to get mortgage if you need to do so in the future? Before you sign the contract make sure that you are clear about every point. If you have any doubt, do not hesitate to have it clarified.

   With a good wage coverage policy you can rest assured that you will always have funds to meet your needs even if you are unable to work due to some medical reason.