When considering your insurance coverage, it is easy to overlook income protection policies. This is common because many people simply want to make sure that they have the medical care they need and a life insurance policy to cover major expenses, in case they pass away unexpectedly.
Unfortunately, there are many events that can take away a person’s ability to work and bring in an income without ending their life. Look no further than the last 18 months – no matter where a person lived and worked in 2020, the Covid-19 pandemic impacted us all in some way.
Income protection insurance helps ensure that your income continues if you can no longer earn one. Most policies replace roughly 70% of the holder’s gross monthly income and may pay out for several months, a year or more, or until the holder retires.
Finding the coverage that is right for you depends on how much of your gross income you would like replaced, how long you would like to receive the replacement income if needed, and the length of time you would like the policy to cover you. If you are within 10 years of retiring, for instance, you might choose a different income protection policy than a person in their early thirties.
While it is impossible to know what the future holds for any of us, it is possible to protect yourself and your dependents against sudden loss of income. As you consider the insurance coverage that fits your needs, be sure to look over income protection policies – just in case an unexpected event takes away your ability to work and earn a living.
