Why You Should Consider Income Protection Insurance Before the Next Pandemic

The year 2020 was tough for many people but it was also the year that forcibly reminded all of us of the importance of always being prepared for the unexpected. The Covid-19 pandemic exposed the financial vulnerability of many Americans. Many families realized that in the event their family breadwinner was no longer able to work or worse still lost their life, the family would be left with long-lasting and catastrophic financial challenges. And with the many lockdowns and restrictions, some of which lasted for several months, most people were constantly worried about their finances and the health of their loved ones. The uncertainty the covid pandemic brought into society is one of the main reasons why there is an increased demand for income protection insurance. 

Without a doubt, the world is still reeling from the impact of covid 19. Many are still terrified of the disease and public health management services all over the world have already started preparing before the next dangerous pathogen emerges. If you know for sure that you would struggle financially if you lost your income due to an accident or illness, this is the perfect time to consider taking up an income protection insurance policy. 

What Is Income Protection Insurance Policy?

Income protection insurance is a long-term insurance cover that ensures that you get regular payments that are equivalent to about 50 to 65% of your income until you are fully recovered and able to work again or until you retire, whichever comes sooner. Ideally, income protection insurance covers most illnesses that leave you incapacitated in the long term or short term and they vary based on the type of policy you choose. There is usually an agreed waiting time before the payments commence and this waiting period can vary from 4 weeks to one year. You need to know that the longer you wait, the lower the monthly premiums will be. 

If you are unable to work due to a life-threatening illness, you might assume that your employer will still give you some income to keep you going, especially if you are a long-standing and loyal employee. However, many employers move employees to statutory sick pay within six months and within a year of being sick and off work, only a small percentage of employees receive any income from their employers. If your savings are limited, you might soon find yourself unable to pay bills, mortgages or rent, and utilities such as water. 

Why Should You Consider Income Protection Insurance Before Another Pandemic Hits? 

1. Freedom From Debt, Even Without an Income

Getting sick does not mean that you will not accumulate bills, neither does it mean that your previous debts will disappear. In fact, in the journey to recovery, you might end up accumulating more bills and loans as you try to keep your family going. With an income protection policy, you can stay on top of debt even when you are not bringing home a salary.

2. You Can Focus on Your Recovery

Being unwell and having to deal with financial stress can be very detrimental to your overall health. This is why you need to prepare yourself before another pandemic hits. In the event you get sick and you have an income protection insurance cover, you will only worry about getting well, the rest will be covered by your insurance provider. 

3. You Can Maintain Your Current Standard of Life

The covid 19 pandemic resulted in many families downsizing and drastically changing their lifestyles in order to survive. However, if you have income protection, you can still maintain your current status even when you are unwell and this will go a long way in reassuring your family that all is well.