An income protection plan that will work best for you, will depend on your needs. An income protection policy protects you against loss of income due to illness or injury. It pays out monthly just like your regular income taking care of your living costs if you have witnessed the loss of income due to any of the above circumstances. It will continue to pay till the time you can work again, or retire, or till you die depending on the policy that you have chosen.
Generally, these policies pay 60-70% of your gross monthly earnings into your bank account and are tax-free.
Various options available
There are options of income protection available which payout in case of accident, sickness and unemployment insurance. You can set a timeline of when the pay starts after you are off work, the kind of work covered and how much it pays out as a percentage of your income.
Income protection best for self-employed
The plan that will be best for you will depend on your circumstances. If you are a self-employed person, you will not have sick pay to fall back on in a situation if you are unable to work. In such a situation, it is best to opt for a long-term policy, which will take care of your income should you find yourself unable to do your occupation for a longer tenure.
Also, a self-employed person may find it hard to make a claim or may witness delays in the process. This is because a self-employed person may have to provide additional evidence to support an income protection claim. So it is advisable to take a long-term income protection policy.
If the job is highly manual or specialised then the risk is that much higher, and having an income protection policy will be a good option. However, the premiums paid will be higher, given that the risk involved in such jobs is more.
We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
Call 011-3733-4610 – Monday to Thursday from 11.00 to 19.00 and on Friday between 11.00 and 16.00