What exactly is Income Protection Insurance?
Essentially, this insurance is intended to protect anyone who has fallen ill or has been severely injured. Many people worry about being hurt in an accident or suffering from poor health. How are you supposed to support yourself if you can’t work temporarily? For that matter, how are you supposed to support your family? If you have people who look to you for help, you don’t have the option to take that time off.
Falling behind on your bills can lead to significant debt. Bankruptcy and home foreclosure are possibilities for those who don’t save money regularly. With current economic times, it can be difficult to put money back for gaps in employment.
Income Protection Insurance can give you the comfort of being covered during periods that you can’t work. There are a couple of options that you can choose from when it comes to Protection Insurance.
Short-term and Long-term income insurance:
Short-term income insurance plans are meant to protect the policyholder’s revenue for a short period of time. If you are covered by the short-term plan and you are hurt or injured to the point of needing time off work temporarily, this policy can protect you financially. This policy is valid for four weeks up to one year.
Long-term income insurance plans are meant to protect the policyholder’s income for longer periods of time. These policies will even cover those who might not be able to return to work at all. For this reason, long-term income insurance is a better idea.
These types of insurance policies can give the policyholder comfort knowing that no matter what happens, their families financial security is still safe. If you work a job that is hazardous and can leave you injured, these plans are perfect while you’re trying to process your worker’s compensation pay. Workers Compensation injuries can take time to pay out. If you have to fight your worker’s compensation pay, you could be left without any money to pay your bills. Waiting on the court system could take you months or even years to see a dime. Don’t leave yourself exposed to the stress and anxiety of not being able to pay your bills.
There could be some things that can eliminate you from being qualified for Income Protection Insurance.
If your injury or illness is directly correlated to drug/alcohol abuse or addiction, then you will not be able to use your income insurance. Same for if you had committed some sort of criminal act.
If your injuries are due to self-harm, you won’t receive a payout for your lost time at work.
You also won’t be covered if you were fired or let go from your current job for anything other than an injury or an accident.
If you are in the process of transitioning employers, you will need to have your policy reevaluated. During this time of voluntary unemployment, you most likely will not be covered.
If you would like to inquire a bit more about Income Protection Insurance, check out https://www.lifesgreat.com/income-protection-insurance. It could be a life saver in some of the hardest times. Why wouldn’t you protect yourself?