Have you ever wondered that you could safe guard your salary in case you are unable to work? You must learn about how to protect your salary and get a supplementary income when you are redundant. You must know about the benefits of income protection insurance before you experience a doom's day. How will you protect your earnings when you are sick, met with an accident or have been laid off?
Insurance companies have created a better protective plan which has overtaken the life insurance plan. Life insurance plan is not that popular these days as the probability of falling sick is greater than losing your life. So, there is greater need to protect your salary due to redundancy rather than protect your money in case you were to die.
This protective cover will compensate for the loss of earnings due to sickness, accident, lay off etc. You will be provided liveable wages when you are out of work and there is no monthly salary provided to you. This does not apply if you were to take sick leave and are still getting paid salary as you are utilising your paid leave as an employee. You are paid a supplementary salary only if your company is not paying you.
Income Protection Insurance will pay you a liveable wage in the event of you being unable to work due to accident, lay off or sickness. As long as you are making your insurance premiums you can take benefit of tax exemption. You can discontinue from the insurance plan when ever you feel like. Once you begin paying your premiums you can enjoy the benefit of 50-70% of your salary. You don't have to be associated with this protective cover for ever, it is up to you for how long you want to be benefited from this. Your financial commitment is towards the monthly premiums you pay.
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