Have you ever stopped to consider what would happen to you and your family if you were unable to earn the money to support them through an accident or an injury to yourself?
Some of the unpleasant things in life we tend to say I’ll look after that later and later is always coming. Things like being incapicated for a year or longer, permanently disabled or even the worst, killed in an accident.
You tend to take care of insurance for your home, your contents, your car and neglect the most important, your family and yourself.
Many companies will have protection in place if you are injured while working, this can differ from company to company, state to state and country to country. But what if you were injured while not at work, you would not have any income protection insurance cover to help you support your family. If you are working for yourself then your definitely need your income protected with an insurance policy.
There are a couple of insurance covers to protect you. There is firstly life protection insurance and then income protection insurance.
Life protection normally has three forms, you can be insured against death, injury or illness.
1. Death cover this is usually called term life, and will pay out a lump sum to your dependants if you die unexpectedly.
2. Total and permanent disablement, this cover pays a lump sum if you happen to suffer and injury or illness that stops you from working again.
3. Trauma cover is the third and this type of insurance will cover you if you suffer a range of specified illnesses. These normally include, heart attacks, cancer or stroke.
The above three can often be combined, talk to your insurance consultant about this.
The other insurance to cover you is an income protection policy. This is a ‘must have’ insurance cover if you are self-employed.
Income protection will cover your ability to earn money. If you are unable to work due to illness or injury, this policy will cover you for up to a percentage, often 75%, of your monthly income.
The cover can be for two years, five years or until a particular age. There is normally a waiting period, somewhere between 30 and 90 days, after which the benefits will start being paid.
So you have a choice to protect your family and yourself. If your employer does not have the employees’ compensation type cover then you will need your own income protection policy to protect you while working and for everything else you will need the life protection insurance.
Let your insurance company or insurance consultant, guide you with getting the right cover for you.