In order to live independently, you need to have a stable source of income. The salary that you will receive is extremely important because this is where you will get payment for your monthly bills like apartment rent or mortgage and utility services, plus your expenses for food, transportation, grocery items, and other essential stuff. You can also have your own business but it won’t be able to provide you a stable income if you just started.Thus, you need to get a job or have a business that been running for at least three years.
There are times that most of us fell sick or even experience accidents due to work. As a result, you will miss your work and have to pay for the hospital expenses. Good thing that there is an insurance policy that will protect your income: the Income Protection Insurance.
You can choose with three different types of Income Protection (IP). There is a policy that will help you if you get involved in accidents or get sick, unemployed, and the comprehensive coverage for accident, illness, and unemployment. If you are unable to work, you will get coverage for the 70% of your gross salary so that you won’t experience any financial hardships. The people who should consider getting this type of insurance are those who won’t be able to make ends meet if they suddenly got fired from their job, self-employed, or there are people who are financially dependent on them.
There is two provision payouts for Income Protection: short-term and long-term income protection insurance. In the short-term, you will get the payouts if you won’t be able to work from 6 to 12 months. On the other hand, the long-term payout will only be received if the insured person will no longer be able to work again.