When is the right time to buy Income Protection Insurance?

There are many that have yet to discover what benefits income protection insurance have to offer and those who are unsure of its importance. Perhaps already having certain insurance policies in place such as life insurance, there needs to be a certain clarity made between income protection and other seemingly similar policies.

Ok, if you were to look at life insurance and other policies such as critical illness insurance, it is important to deduce straight away that these two policies should in no way be connected with income protection insurance. Possible similarities between income protection and critical illness plans are apparent in the fact that they pay out if a person contracts a critical illness or are no longer able to work due to that illness but life insurance only pays out if the insured party dies.

No help there for the insured party then is there? With that in mind, critical illness policies pay out a lump sum cash amount whereas income protection pays a percentage of the claimants’ salary each and every month, ensuring a regular income is still attained. Depending on the level of cover a person chooses, they could in effect receive payments up until the day they retire if their injuries or illness is serious.

So in the final conclusion, the question remains of when the right time it would be to take out income protection. The answer can be very different for individual cases but by any standards, the earlier you take out a policy, the more cost effective it will be in the long run, especially if there is a history of health problems in your family or if you work in an industry that is dangerous or has high risks.

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