Although the importance of having protection against the loss of income is pretty self-explanatory, it is nevertheless a fact that a lot of people do not seem to appreciate just how much they can gain through it. Many of them equate it to the many other insurance policies out there and so dismiss it as a low priority agenda. But considering the problems of today’s economy, the advantages of having Income Insurance really cannot be ignored, especially since losing income is becoming an increasingly real possibility.
Reality of income loss
While it might seem like fear mongering, it is an undeniable fact that more and more income opportunities are disappearing every day, and less and less are returning. The majority of people are unable to fully appreciate this fact because it is a reality that has been kept at the fringes of society. Recently however, cracks have been showing in the system and the phenomenon is steadily creeping into mainstream public.
The number of failing businesses is increasing, the rate of unemployment is startling and the prospect of making something of ourselves is steadily declining. Is it any wonder that more and more people are now relying on their savings just to survive? There is a way that you can protect yourself from this, and that is through income insurance.
Income Insurance advantages
If we are going to talk about the advantages you get from having income insurance, perhaps the most obvious would be the peace of mind you would enjoy. It is a fact that to get this particular policy, you would have to pay a certain amount of money on a regular basis to keep it going. However, this is something you can afford to do while you still have the capability. Try comparing that to what could happen when you lose your flow of income and you don’t have income protection.
Next to peace of mind in the obvious advantages of income protection, you also have the fact that you can support your family even without a job with the payout. While you may only get 75% of your original income at most, that is at least better than having nothing to draw from at all.
By having income protection, you can also prevent your savings from being ransacked due to necessities. These days, saving is extremely important in order to secure a life of comfort in the future. That will come to nothing if you have to empty out the jar the moment you lose your job.
Along with losing your job, other incidents might happen that would require a lot of money. If your savings is all you have, that could prove disastrous since that could leave you with nothing to support your family with. If you have your savings and your income protection payout however, you then have a pretty good source of funds that can get you through the hard times while allowing you to care for your loved ones at the same time.