Reasons Why You Should Consider Income Protection Insurance

Reasons Why You Should Consider Income Protection Insurance

Reasons Why You Should Consider Income Protection Insurance: Income protection insurance is just what the name suggests. This type of insurance is usually designed to benefit you in the event that you are unable to work for a period of time. This may be due to a disease or injury. It gives you monthly benefits like your salary. It pays you until you are able to return to work or for an agreed period. This insurance policy is offered only in select countries. Which includes Australia, Ireland and New Zealand. as well as South Africa and the United Kingdom.

People often ask why they should take out Income Protection Insurance. People are generally not comfortable spending significant amounts of cash for long periods of time. This usually covers around 70 to 80% of your pre-tax pay. It offers various benefits.

More about income protection

Loan repayment

New home owners carry huge debt when they take out a home loan. These loans often remain unpaid for years. Even for a few decades. This type of loan is difficult to repay if you are no longer able to work. Income protection insurance plays a big role in this.

Other loan payments

If you get sick and don’t pay for work, your bills won’t stop coming. The interest rates on your other loans will also remain unchanged. Accumulation of more debt is possible due to expensive foreclosures. Especially if you need medical or special treatment. Income protection insurance can reduce the pressure of managing the above bills.

Recovery focus

Financial stress is something that most people avoid. Even more so when you are recovering from an illness or injury. Your rehabilitation may take longer due to stress. Income protection insurance lets you focus on your recovery instead. All you need to think about is your health and recovery.

Quality of life

Most people do not want a sudden change in their routine and lifestyle. This is essential when you are sick or injured. Income protection insurance can make sure you feel better about your situation. You can continue to enjoy your quality of life even when you are unable to work.

Family Reassurance

Medical bills are expensive. If you can’t work it can be a problem for you. Then your family members are left to participate in these expenses on your behalf. Income protection insurance allows you to eliminate this worry. Your family can use your policy to pay your medical bills.

Potential tax benefits

You can claim income protection insurance premium on your annual tax return. The amount you can claim depends on your taxable income. plus your marginal tax rate. You should check whether you are eligible to claim this benefit or not. Keep in mind that you can claim only for the premium paid during the financial year. Your Income Security Insurance payments are also taxed.