InsurancIncome Protection e: What Does it Mean?
Income protection insurance is fast catching on as a smart way for people to protect their assets should they have an accident or fall ill.
Income protection insurance is a new idea for a lot of people, though it is fast catching on as a smart way to protect your assets should you have an accident or fall ill. The basic premise of protecting one's income is to ensure that the majority of your salary will still be coming in, even if you are unable to work. The following is a basic breakdown of what it means to have income protection insurance.
What is it?
Basically, income protection insurance is there to meet the needs of wage earners who are unable to work because of accident or illness. Often benefits provided by the government fall well below the need of average earners, so additional insurance can help make up the difference. When needed, the insurance will provide the policyholder with a fixed monthly payment that is usually around 75% of their regular income, helping to continue paying necessary bills even when they aren't able to work.
Who Needs Coverage?
These days, one of the greatest risks most of us face is the inability to go to work. Essentially, our ability to earn an income is one of our biggest assets and, should this ability be taken away, we stand to lose everything that we have accumulated such as cars, homes and other assets and investments. It is recommended that all working people at least consider getting income protection, though it is especially important for those with large financial obligations such as a home and dependants.
How Much Does it Cost?
The cost of income protection insurance varies per person, but is generally about 2% of an individual’s total income. Like with most insurance premiums, it can deviate from the norm based on other risk factors such as age, gender, whether someone smokes or not, pre-existing health conditions, lifestyle and occupation, so you should call for a more exact quote.
How to Shop for Coverage
For anyone planning on shopping for income protection insurance, it is highly recommended that you enlist the help of a qualified advisor. Although there are many companies out there who provide blanket insurance coverage, people who have a more complex financial situation will benefit from having a customised plan. The best thing to do is start by researching your options and getting some income protection quotes online, so that you know exactly what to expect.
Benefits of Coverage
Besides the obvious benefit of not going broke if you are to get sick, insurance protection offers some other benefits as well:
- Coverage is continuously given from the time the policyholder becomes incapacitated until the first of the following occurs: recovery of health, retirement, the end of the term of contract or death.
- Coverage is paid regularly and is tax-free.
- The insurance company cannot cancel or refuse to renew the policy as long as the policyholder is paying their premiums on time.
- Depending on the policy, the policyholder may be eligible to have their premiums waived during the time they are receiving coverage from the policy, with the policy coverage continuing as normal.
Insurance: A Guide
"Remember kids, I have life insurance" - Adam Savage
This is a guest article from Tatyana Levin
These days one must be financially savvy. Money is not easy to come by and should be managed carefully. With the availability of tools that make it easy to keep track of current events, the stock market, and even your own money, it would be almost a crime to not utilize these tools to make the best and most informed financial decisions. Unfortunately, the more there is, the more there is to keep track of. This applies both to tracking tools and money (the small curse within the comfort of having money to keep track of).
The savvier ones of us dabble in investments, and the savviest make their living that way. The key is that they know what to invest in. Not magically, of course; investors do a significant amount of research to learn how to optimize their portfolios, but they have the understanding.
A grossly overlooked investment is insurance. This may be because is not typically referred to as an investment with the exception of whole life insurance that has a specific investment component within it. Webster’s defines the word “invest” as a commitment of money for a return and “insurance” as a guarantee. This makes insurance the safest type of investment, because your returns are guaranteed. But returns are not always financial in the case of insurance. They can be, if there is an unforeseen accident, but the most certain return is the feeling of security.
Now there are many different types of insurance, and what you need depends on your current situation. Obviously you only need auto insurance, found using auto insurance leads if you have a car, and you only need renter’s insurance if you rent and have possessions that you would need insured. Insurance is for those who have something to lose. With an attachment to something, either emotional of physical (or dependence, not like physically being glued to your car), comes the fear that it will be damaged or ruined in some way. For example, if your house caught on fire, you would be devastated. What would add insult to injury is not having a way to recover from this horrible disaster.
These types of examples are not unique to this article. That is the way that insurance is sold. As they say that clichés are clichés for a reason, insurance is promoted this way for a reason. The foundation of the concept of insurance is uncertainty, and it is the same uncertainty that is conjured up when investing.
The main difference between insurance and investment is that not having insurance creates a feeling of uncertainty while investments by nature are uncertain. Therefore, investing in insurance creates security and is the only secure investment that exists (and is legal). Getting insurance should be one of the easier financial tasks if you apply all the resources available with technological advances like smart phones.
About the Author: This article was written by Tatyana Levin, a copywriter for InsuranceFiles.com
Income protection insurance is fast catching on as a smart way for people to protect their assets should they have an accident or fall ill.
Income protection insurance is a new idea for a lot of people, though it is fast catching on as a smart way to protect your assets should you have an accident or fall ill. The basic premise of protecting one's income is to ensure that the majority of your salary will still be coming in, even if you are unable to work. The following is a basic breakdown of what it means to have income protection insurance.
What is it?
Basically, income protection insurance is there to meet the needs of wage earners who are unable to work because of accident or illness. Often benefits provided by the government fall well below the need of average earners, so additional insurance can help make up the difference. When needed, the insurance will provide the policyholder with a fixed monthly payment that is usually around 75% of their regular income, helping to continue paying necessary bills even when they aren't able to work.
Who Needs Coverage?
These days, one of the greatest risks most of us face is the inability to go to work. Essentially, our ability to earn an income is one of our biggest assets and, should this ability be taken away, we stand to lose everything that we have accumulated such as cars, homes and other assets and investments. It is recommended that all working people at least consider getting income protection, though it is especially important for those with large financial obligations such as a home and dependants.
How Much Does it Cost?
The cost of income protection insurance varies per person, but is generally about 2% of an individual’s total income. Like with most insurance premiums, it can deviate from the norm based on other risk factors such as age, gender, whether someone smokes or not, pre-existing health conditions, lifestyle and occupation, so you should call for a more exact quote.
How to Shop for Coverage
For anyone planning on shopping for income protection insurance, it is highly recommended that you enlist the help of a qualified advisor. Although there are many companies out there who provide blanket insurance coverage, people who have a more complex financial situation will benefit from having a customised plan. The best thing to do is start by researching your options and getting some income protection quotes online, so that you know exactly what to expect.
Benefits of Coverage
Besides the obvious benefit of not going broke if you are to get sick, insurance protection offers some other benefits as well:
- Coverage is continuously given from the time the policyholder becomes incapacitated until the first of the following occurs: recovery of health, retirement, the end of the term of contract or death.
- Coverage is paid regularly and is tax-free.
- The insurance company cannot cancel or refuse to renew the policy as long as the policyholder is paying their premiums on time.
- Depending on the policy, the policyholder may be eligible to have their premiums waived during the time they are receiving coverage from the policy, with the policy coverage continuing as normal.
Insurance: A Guide
"Remember kids, I have life insurance" - Adam Savage
This is a guest article from Tatyana Levin
These days one must be financially savvy. Money is not easy to come by and should be managed carefully. With the availability of tools that make it easy to keep track of current events, the stock market, and even your own money, it would be almost a crime to not utilize these tools to make the best and most informed financial decisions. Unfortunately, the more there is, the more there is to keep track of. This applies both to tracking tools and money (the small curse within the comfort of having money to keep track of).
The savvier ones of us dabble in investments, and the savviest make their living that way. The key is that they know what to invest in. Not magically, of course; investors do a significant amount of research to learn how to optimize their portfolios, but they have the understanding.
A grossly overlooked investment is insurance. This may be because is not typically referred to as an investment with the exception of whole life insurance that has a specific investment component within it. Webster’s defines the word “invest” as a commitment of money for a return and “insurance” as a guarantee. This makes insurance the safest type of investment, because your returns are guaranteed. But returns are not always financial in the case of insurance. They can be, if there is an unforeseen accident, but the most certain return is the feeling of security.
Now there are many different types of insurance, and what you need depends on your current situation. Obviously you only need auto insurance, found using auto insurance leads if you have a car, and you only need renter’s insurance if you rent and have possessions that you would need insured. Insurance is for those who have something to lose. With an attachment to something, either emotional of physical (or dependence, not like physically being glued to your car), comes the fear that it will be damaged or ruined in some way. For example, if your house caught on fire, you would be devastated. What would add insult to injury is not having a way to recover from this horrible disaster.
These types of examples are not unique to this article. That is the way that insurance is sold. As they say that clichés are clichés for a reason, insurance is promoted this way for a reason. The foundation of the concept of insurance is uncertainty, and it is the same uncertainty that is conjured up when investing.
The main difference between insurance and investment is that not having insurance creates a feeling of uncertainty while investments by nature are uncertain. Therefore, investing in insurance creates security and is the only secure investment that exists (and is legal). Getting insurance should be one of the easier financial tasks if you apply all the resources available with technological advances like smart phones.
About the Author: This article was written by Tatyana Levin, a copywriter for InsuranceFiles.com
No comments:
Post a Comment