Income Protection is a policy which pays out 70-80% of the income if one is unable to work due to illness or injury. People who work for others buy online income protection quote without any hesitation, but when it comes to self-employed people, they don’t give much importance to an income protection policy.
There are so many misconceptions about income protection; one of them is “Income Protection is not important for those who are self-employed.”
Income Protection Cover is more critical if you are self-employed as you don’t have access to insurance cover provided by the company. If you are unable to work, not just your family, even your business have to face the financial crisis severely.
Income Protection Insurance is the essential insurance coverage to consider if you are self-employed or planning to become self-employed.
Here are a few reasons why you must get an income protection cover if you are self-employed:
There is no insurance provided by the company to cover you
There are many benefits like overtime, medical insurance, vacation, profit sharing, and retirement benefits that an employee gets, but if you are self-employed, you don’t have access to those benefits.
You won’t have any policy provided by your workplace to cover your financial needs when you are ill or injured. You may have your business insured but if you can’t work your business insurance won’t pay out.
In this situation, income insurance coverage comes to the rescue. Income insurance will pay out a certain amount every month to overcome your expenses; this will help you maintain your and your family’s quality of life.
It could happen to you
You might be healthy, young, and happening, but it’s not a good idea to your health for granted. You cannot be entirely sure about what is going to happen in the future.
Ask yourself, if you become unable to work due to illness or injury, could you cope with your daily expenses and medical expenses? If your answer is no or you are in doubt, you must consider getting an insurance protection cover.
Pay debts, rent, and mortgage without income
Your bills and debts are not going to disappear when you get sick or injured. You might pile up the expenses and debts due to additional medical bills.
Those who own home, they might have a hefty loan that takes years to clear off and those who have rented houses, they have to pay rents.
Could you afford to make these repayments you are unable to work? Income protection can help you pay these bills when you don’t have income.
Focus on Recovery
The most important thing that you should focus on while you are injured is your recovery. Financial stress can stop you from recovering; in fact, it can worsen your condition.
Not just financial stress but there are so many things you have to think about once you lose your income. Wouldn’t it be great if all your worries are taken away and all you have to do is focus on recovery? Income protection allows you to do so.
About the Author
Christian Taylor, is an assistant insurance agent at Aspect Underwriting- a boutique insurance agency in Melbourne that provides a wide range of insurance brokering and cover services including online Accident, Health, Trauma, and Income Protection quotes. Reach out to him at email@example.com to discuss your insurance needs.