Income protection insurance benefits come to the rescue of those who have become, through accident or illness, unable to perform their normal work. Naturally, when an individual can no longer attend to regular work responsibilities, there is an associated loss of income, a loss that can be devastating for workers and their families. While there are some state-sponsored safety measures in place for the employee who becomes drastically injured due to the faults or negligent behaviour of others, these measures may not be enough. It can take time to be approved for State benefits; once you have been approved, you may find that these do not satisfactorily meet your needs.
The protection you receive from an income insurance plan will typically provide for your ongoing needs much better than will a State solution. As you learn the income protection insurance basics, you will see that the benefits are intended to answer the broad range of financial responsibilities you face on a monthly basis, allowing you to keep comfortably remitting your payments. In deciding if this type of protection is appropriate for you, you should first find out if your employer offers any group income protection insurance benefits. While some companies include this insurance as part of a benefits package, many others do not. You will also want to carefully consider the many associated benefits and judge for yourself if they align with your needs.
How This Insurance Helps
The main benefits of this insurance involve the secure, dependable protection of your income. Supposing that you find yourself unable to work owing to a long-term illness, a severe injury, or another cause that leaves you disabled, you may suddenly find yourself panicking about how to meet your monthly monetary commitments. Many who have found themselves in this scenario fear the loss of house, car, important services, and much more. These fears are founded in reality. For the disabled person, even if Statutory Sick Pay (SSP) or Employment and Support Allowance (ESA) is forthcoming, bills that previously presented no obstacles can come to loom frighteningly every month. Benefits such as SSP and ESA generally provide much less than workers are accustomed to making.
By virtue of income protection insurance benefits, you can give yourself greater peace of mind regarding your ability to make necessary expenditures in the future. Viewed by many as a valid way to protect loved ones, income protection insurance benefits start after a certain deferred period (the time between the qualifying incident and the point at which your benefits begin) and can continue providing for your family for quite some time. Many insurance shoppers are impressed with the fact that this protection will go on until the policyholder is able to return to work, retires, or passes away, so long as the policy contract terms has not expired.
The income you can expect to receive from this protection plan will be an established percentage of your working income. Part of the reason that people in the market for income protection insurance benefits are strongly advised to shop around relates to this percentage. Some companies arrange for a higher percent of your take-home pay to be awarded to you after a claim is approved. While normally higher-percentage cover is associated higher premiums, you may find it worthwhile to pay a little extra for the more robust level of protection. Speaking with a cover agent who specialises in income protection insurance benefits will help you determine the specific amount that is best for you.
Among the many income protection insurance benefits is the fact that the payout you receive following an approved claim is not subject to taxation. Because the continuous premiums you pay for the sake of maintaining your insurance policy are paid from taxable money, your payout itself is not. It is made on a regular basis, usually monthly or weekly, thus mimicking a payment pattern that most people are already accustomed to. As the time surrounding a claim can be hectic, transitional, and stressful, the insured will find it helpful that the income paid out by this policy type is steady and reliable.
Another aspect of income protection insurance benefits related to your finances is that of your premiums. While many workers have steered clear of seeking this coverage because they’ve feared outrageous premiums, you may be able to secure the valuable cover for much less than you had imagined. Particularly if you are a young and healthy worker who presents a minimal level of risk factors via your extracurricular activities and lifestyle elements, you make an attractive client to providers. If you already have life cover with one agency, you may consider looking at their other offerings to see if this type of cover is also available. Bundling services in this way can equal savings for you.