Why do you need an income protection policy? After all, you are fairly healthy and see no reason to rock the boat! First of all, you do not want to be like the man who does not fix the roof because it is not raining and then cannot fix the leaks once it does begin to rain. In other words, the time to decide on a policy is before, not after you become ill or miss work.
Illness
You never know when an illness could strike, leaving you unable to work and earn a living. Too many people feel they are impervious to serious medical problems or accidents and put off seeking an income protection policy, only to wish they had one in place when the worst happens. Have you ever wondered how you would pay the mortgage without a paycheck? What about groceries, utilities and your car payment? Even if you have rid yourself of most debt, there are still everyday living expenses to consider.
Stress and Anxiety
Not all stress is bad; in fact, it can spur you to action at any given moment. Problems arise when the body stays in a consistently stressful state. You see, the body goes through a variety of reactions when you are presented with a stressful situation. The first is what scientists refer to as fight or flight, your body provides the necessary adrenaline to run for or fight for your life.
Of course, this is not meant to be a perpetual state, and when the stress remains other bodily functions can shut down, leading to illness. Learning to cope well with stress can prevent illness; however, you will never be able to rid your life of it completely.
Protection Policy
Whether you suffer a stress related, genetic or germ related illness there is one constant, you need to preserve your way of life. An income protection policy can be tailored to suit your needs. For example if you run your own business and will be partially incapacitated you may be able to structure, a plan that will make up for lost wages, even though you are still working.
Disability or income protection insurance is really something everyone should have! You never know when you could become unable to work due to illness or accident, and wouldn't it be nice to know that your finances are protected? Imagine being able to rest easy with the knowledge that your children will never have to miss a meal, even if you get sick!
When you decide to obtain coverage there are a few optional riders you might want to consider:
- Cost of living adjustments- disability or illness can last years in some cases and you want to be protected from rising costs due to inflation and other factors.
- Social Security- this rider can provide benefits while you wait on a social security determination or in case you do not qualify as disabled by that particular program.
- Residuals- As mentioned above you may want to carry protection for situations when you are only partially disabled or able to work only a few hours per week.
Final Thoughts
No one is completely immune to illness or accident and if your family relies on you as the major breadwinner, you could be leaving your family vulnerable. Take some time to learn more about income protection insurance today, it will not take long and it could be the best financial decision you ever make.
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