Income protection insurance for unstable times

By Tracey Garrow

In these economically tumultuous times, there are some people who find it hard to justify making certain purchases that they deem to be of negligible importance. Yet for some reason, this distinction does not extend to things like fashionable bags or the latest in smartphone technology. But in so far as not to deny people the luxury of such things though, it would only make sense that the protection of their income using Income Protection Insurance should take precedence before everything else. Income is what allows them to enjoy such luxuries after all, among other things.

Income protection insurance

Above all else, the purpose of income protection insurance is to make sure that you will not suffer financially should your income stop flowing due to redundancy or illness. Your income is the most important asset you have since it allows you to feed your family, to pay for the bills, and to settle whatever financial obligations you may have. Without it, you will find it very hard to take care of your family where food, clothes and shelter are concerned.

• If you have income protection when you lose your main source of income due to illness or injury, you will then be able to claim the benefits from the policy which grants you up to 75% of your previous income, depending on the company. That might force some changes in your budget, but having 75% of your total income is a lot more preferable than having to dig into your savings in order to survive.

Qualifying for income protection

You have to understand though that there are certain things which will render you unqualified to get income protection or that could lead to the nullification of your benefits. For one thing, being made redundant through your own dubious actions can cause you to be denied a claim.

The same goes for when you are found to use illegal drugs for recreational purposes or if you were to be found participating in dangerous activities. Suffice it to say, getting an income protection policy requires you to stick with a safe life.

The right kind of protection

You should also be aware that not all providers of income protection are going to be the same in service and policies. Some will offer some pretty lenient guidelines as to the claim while others require a little negotiation. Needless to say, shopping around to make sure that you don’t get the wrong policy for yourself would be a very wise thing to do.

If you find the task of looking for the right kind of policy too difficult, consulting with an independent agent would be of immense help. The knowledgeable ones will be able to tell you which companies would fit your best while the experienced ones will be able to tell you exactly what you need to do to get the best deals.

Waiting time

Something you should consider before finalizing an income protection policy by the way is the waiting period for the claim. Most companies offer as little as two weeks before you can enjoy the payout, but longer options can mean cheaper premiums to pay for.