Life is completely unpredictable and you can never foresee what is going to come your way. The best way is to stay prepare yourself in the best possible way. Insurance plans do exactly that for you. These are your resources which you can use at the time of need. While people understand regular insurance plans there is still not much clarity around income protection. Do you also wonder, why do you need income protection? You would agree that you can fall sick or meet an accident anytime. In such an instance you may not be able to go for work and lose your income. Income protection is meant to provide you income replacement in such situations. It provides you financial support when you are not able to work. Here are some enticing benefits to convince you to invest in income protection.
- The satisfaction of having a backup
The biggest worry during illness, injury, or similar situations in which you are not able to go out for work is to manage your basic needs. No matter whether you earn or not you have to make the ends meet. You have to find ways to pay your rent, mortgages, groceries, and other regular bills. Income protection provides a backup for handling all these expenses.
- Monthly payouts to handle running expenses
Often income protections provide you as much as 75 percent income replacement. You can also get this amount on a regular monthly basis, to meet your everyday financial requirements. You can also choose the duration for which you get these backup payouts. Many insurers provide from two years to even sixty-five years of backup. However, it will depend on your requirements and eligibility.
- Elimination of the stress of piling credits
Illness and injuries come with several significant expenses including medical bills, rents, utility bills, etc. When you are paying more and not earning at all, the only way to manage is to take credits. This results in huge piles of credits. The more time you take to recover, the higher the pile stacks. This also affects your psychological health. Income protection allows you to pay your bills immediately and avoid credit accumulation.
- Maintaining lifestyle while you are down with an illness or injury
Often people are seen compromising with their lifestyle when they are down with illness or injury. Not only you, but your family also have to make these compromises. Income protection lets you and your family maintain your lifestyle and standard. This is a great psychological boost, helps in faster recovery, and gives you more energy to recover and bounce back.
- You may get tax benefits
Some insurance protections also offer tax benefits. The premiums you pay are tax deductibles. The facility is subjective and differs from provider to provider. Mostly these are available with standalone income protection.
- You get independence dignity
When you are sick or injured and not working, you do not have to depend on anyone for your livelihood. Often people have to shift back to their parent’s houses. But income protection provides you financial support to stay independent and deal with your expenses. It gives you a sense of dignity and also saves others to bear your burden.