In today’s uncertain climate, a steady career and financial stability are hard to come by. Thus, once achieved, we try our best to hold on to these pillars and extend their coverage. However, the sad truth is that we can’t secure our financial status in the long run by simply doing the bare minimum. Instead, we need to take extra measures to guarantee that our money is safe and available in the most critical moments.
So, the smartest thing you can do with your funds is to allow a portion of your salary for an income protection insurance. It may sound counterproductive because, essentially, you will be losing money along the way, but we have here five reasons that say otherwise. Read on to know why an income protection plan is a worthwhile investment.
It Gives You Coverage in Uncertain Times
How good or how long you are at your workplace is negligible in the business world. The chopping block of unemployment is an inevitable destination for the unsuspecting employee. Fear no more if you are worried about sudden unemployment and how you will sustain yourself in that unfortunate event. With an income plan, you are guaranteed 70% of your income back with an additional 10% when you are unemployed to injury or illness. This figure is more than enough to help you get back on your feet as you transition careers.
Helps Maintain Your Quality of Life
Usually, professionals at work are quick to settle into their new lifestyle. However, a sudden change in income can drastically change that and disorient a person that hasn’t prepared for such an event. Since income protection insurance gives out an amount close to your salary in case of unemployment, you might not have to make as many changes. You can continue to live according to your accustomed lifestyle.
An income protection plan also greatly minimizes the risk of financial mishaps and irresponsible handling of your funds. Once your scheme is secured, you know you’ll be able to save your money for a rainy day instead of on unnecessary expenses.
Puts Your Loved Ones At Ease
In the unfavorable event that you are out of employment and with illness or injury, a weight is put on your family and loved ones to take care of you. If you don’t have a source of income, payments for treatments and medical services are most likely going to come out of their pockets. However, if you have been diligent in handling your money and have an income protection plan, your family members won’t need to worry about the financial aspect of your care.
It Will Help You Be Financially Healthy
Bid farewell to your financial stressors and breathe easy knowing that your money is in good hands. You no longer have to consider hefty debts to pay your medical bills if you get sick or hurt without a job. Income protection also compensates you for such expenses. This security blanket not only takes the load off your physical burdens but also eases the mind, proving to be an excellent choice to help maintain your mental health.