A number of recent studies have shown that disability is an issue that everyone should be concerned with, even people who are young. Statistics show that you have a much greater chance of becoming disabled while you are working compared to dying before the age of 65. Even if you are making a high income, everything can change over night if you are injured. Becoming disabled is one of the leading causes of bankruptcies and foreclosures. To avoid this, it is important to make sure your income is protected.
When you talk to most people in the financial industry, they are quick to tell you about the importance of asset protection. They will scare you with the horror stories of people being sued while they are nearing retirement, and losing everything they've worked their entire lives to build. However, few of them will tell you about the importance of protecting your income. Income protection is just as important as asset protection. If you are interested in income protection, the first thing you will need to do is compare the various protection plans that are available on the market.
Anyone who works a minimum of 20 hours per week should be able to set up an income protection plan. The goal of these plans are to protect you in the event that you are not physically able to generate an income for you and your family. In addition to physical handicaps, the income protection plan should also cover mental disorders as well. Many income protection plans will look at your case based on your occupation If you are injured in a way that keeps you from being able to carry out the necessary tasks for your occupation, you will be given benefits.
It is also important for you to look for an income protection plan that will not limit your benefits if you decide to switch to a new occupation. The situation that can result from you not having income protection is severe. There have been stories of doctors getting into accidents, and they were not able to go back to work for months. The time that these doctors spent away from work nearly caused them to lose everything they had. It is also important to understand how the term "own occupation" is used when talking about becoming disabled. This term will demonstrate when you are allowed to start getting benefits.
Many income protection plans exclude mental disorders or problems that are related to the nervous system. It would be wise for you to avoid using such plans. It is essential for you to make sure you're protected from any type of disability, whether it is physical or mental. A good company should be able to cover both. You should also get a plan that can assist you in the event that you are able to come back to work part time. Income protection is an important issue that you will want to look at. We live in an uncertain tomorrow, and there is no guarantee that you won't get into a situation where you are unable to make a living for yourself. Income protection can shield you against this event.
About the Author: Michael Colucci is a writer on Income Protection which is part of the Knowledge Search network