Many people see the need to protect their assets with insurance, but very often they fail to see that their ability to produce income is their greatest asset. Without the ability to go to work every day and bring home that income, your life would be a great deal harder and much less pleasant.
So it makes sense to also protect yourself and your income with income protection insurance. This will pay you up to 75% – 80% in some cases – of your income if you are prevented from working by serious illness or accident. With all those nasty car accidents we keep hearing about on the news it doesn’t take much to realise that anyone can be involved in one and suffer serious injury.
It is even possible for the most careful driver to have a car accident due to the carelessness of others. Where would you be if such a disaster should befall you? You could be laid up for months with broken bones, then need rehabilitation before you could walk or move properly again. Income protection is especially necessary if you have a young family to consider. A single person may be able to move back home and have parents take care of the bills and the injury. But when there is a family it is a great deal more difficult.
Besides which, suddenly being deprived of income for the time it takes for multiple injuries to heal can simply ruin your future plans or set them back for years. You may have to sell up your home and other assets simply to get enough money to live, let alone pay the bills.
It is not only your own future that is dependent on your income, but the future of your children. Their lives could be radically changed if they were unable to attend the higher education that they had planned on due to your inability to pay for it.
Yet with the simple act of taking out the right income protection policy for your needs, you will save you family from financial ruin. When taking out income protection you need to understand exactly what the policy will and won’t provide for and do your research to get the best deal possible.