In today’s chaotic society, it is easy to get caught up rushing through life, focusing on our careers, buying a home, and building a family. Of course, these are all the proper steps to take, but it is astonishing how at risk we all are when we overlook something as straightforward and affordable as income protection.
Imagine spending your life tirelessly working but having it taken away due to an unfortunate situation that stopped you from working for a brief period. Income protection insurance is there to ensure that it never happens. With prices rising and our financial obligations growing, failing to purchase a comprehensive income protection policy can be a critical mistake. Today, we are going to discuss the importance of taking a step back to address your financial stability and ensure you are always covered.
Why Overlooking Income Protection Can Be Detrimental to Our Wealth
Overlooking income protection can be a result of taking things for granted, focusing too much on other aspects of life, or simply not knowing it exists. However, if a scenario occurs where an accident or illness prevents us from working, life can become excruciatingly tough. We are never many steps away from financial struggles, so ensuring we are covered if lousy luck strikes is crucial. Additionally, even if we have substantial savings tucked away, an accident or illness can cause us to dip into them, putting ourselves in the red.
What Does Income Protection Insurance Cover?
A good income protection insurance policy will cover up to 70% of our pre-tax income if we are unable to work due to an injury or illness. Policies usually cover severe illnesses, bad injuries, and mental health struggles, but they can cover much more. Additionally, most policies can be fully tailored to meet the specific needs of the policyholder and align with their financial situation. This means you get to select the benefit amount, time, and waiting period, resulting in much more affordable premiums than many other insurance policies.
Tips to Identify the Best Policy to Align with Your Financial Goals and Obligations
When taking out an income protection insurance policy, there are several steps we can take to ensure it will work for us and align with our unique financial situation. If you haven’t taken out an income protection insurance policy yet, here are some tips to help you make the wisest decisions.
- Thoroughly assess your financial situation to ensure the policy will cover all monthly expenses, mortgage payments, and living costs and provide a little extra to keep thriving during difficult times.
- Compare policies to form a well-rounded overview of what you can expect.
- Learn the definitions within the policy to ensure you fully understand what you are paying for.
- Carefully study all exclusions in the policy to ensure they will likely be paid out during unfortunate times.
- Always seek the help of a professional.
When You Should Start Thinking About the Future
There is no better time than now to start ensuring we are always financially stable. However, as our careers and families grow, it is crucial to review your policy regularly to ensure it always aligns. Income protection insurance is something we should all consider purchasing as soon as we possibly can, allowing us to thrive in the worst of times.
