Having a Plan B in place to cover your income should you become disabled or experience an accident that prevents you from working is an excellent way to be prepared for the unexpected. Even though you may only receive two-thirds or half of what you were making, if you have had a good working budget and spent money within your means, you should be able to honour your financial obligations with help from your insurance plan. Let’s take a look at some important points you should be thinking about as you strive to protect your income with insurance cover.
Do You Need Protection?
Carefully explore the cover that you may already have through your employer or some other source. You should determine:
If your workplace offers income protection to you in your benefit package
If another type of illness policy such as a cancer policy would cover you in the event that you could no longer work
If your savings account has a large enough balance to offset any disruption in your pay and if it could help you to maintain your financial payouts for a long period of time should your injury or illness be an extended one.
You’ll want to discuss with an insurance specialist all of the types of cover that are available to you so that you’ll know precisely what will work best for your needs. You should examine all of your current debts, how soon you expect to get them paid off, your cash flow patterns, and how your income impacts all of these payouts.
Become Familiar with Your Plan
When you decide on the cover that you need, you must read the terms and conditions that apply to your policy to ascertain if this is what you want. You’ll want to know how to file a claim, for what situations you can make a claim, when to make the claim, and approximately how much you’ll be getting. Should you have questions or find parts of the contract that are unclear, you’ll want to schedule a meeting with your specialist who can explain the terms of cover in easy-to-understand language to you.
How Much Cover Do You Need?
It’s very important that you determine the level of coverage that your policy should provide to you. You can begin by thinking about:
The amount of your take-home pay
What your state benefits would be
The work-related costs like food and clothing as well as travel
The additional expenses you would incur such as medical equipment, specialised care, and extra energy costs
You should partner with a reputable company that can provide you with a variety of types of income protection, one that can help you ascertain the amount of cover that you need, and a specialist that can answer all of your queries efficiently for you. A professional financial advisor can help you protect your income by having a quality plan in place long before you need it.
Image courtesy of stockimages/FreeDigitalPhotos.net