Do You Need Income Protection Plan
You need to insure not only your home or car, but also yourself. While most people have death insurance, you should worry more about getting insurance while you are alive. An income protection plan will allow you to insure your income against illness or injury by paying a regular monthly income in case you are unable to work. You need to have a steady income to support yourself, and if something goes wrong and you can’t work, your health insurance policy will protect you.
It’s hard enough surviving on your current salary; Now imagine how much more difficult it would be without a salary. An income protection plan will insure you against these financial hardships by providing 75% of your current income in the event that you are unable to work due to illness or injury. One in four people will suffer from a serious illness at some point in their life, so it is advisable to insure your income against serious illnesses. Contributions to an income protection plan are tax-free, which helps reduce costs but provides the necessary income protection.
Under an income protection plan, you can insure up to 75% of your income for illness or injury, so if you are unable to work, 75% of your earnings will be paid to you monthly from your income protection plan. This will help you cover your usual monthly expenses like mortgage payments, clothes, school fees, meals, etc. Many companies give their employees paid leave while they are sick; however, most of these sickness benefit schemes are short-term and not a long-term solution.
In my experience, six months is the six longest payment plans available, while on the other hand, health insurance can protect you for much longer periods of time. Many companies do not pay sick leave and have no provisions for this, so what to do? Either way, an income protection plan will provide you with income that no one else can earn. You can choose the level of health insurance you want, and if your employer provides 6 months of sickness coverage, you can choose income protection coverage thereafter.
Another item you can rely on is unemployment benefits, and although they are € 196 per week, it is usually significantly less than your current income. If you are self-employed, you may not be eligible for unemployment benefits, so what if you are unable to work due to illness or injury? The income protection plan will cover both employees and the self-employed.
While looking for health insurance, get the rates from different insurance companies and compare them. Better yet, get independent advice from a financial broker who can work with multiple financial institutions. Always remember, if there is a significant difference in price, be sure to compare like-to-like.