If you are an energetic and fully employed man or woman, especially a young one, chances are that you will probably turn up your nose at the very mention of Income Protection Insurance. Nobody in their right mind can really be bothered about saving for a rainy day when you are at the height of your faculties.
All of us like to maintain the mirage that it will always be as rosy as ever, new jobs, higher salaries etc. And if it doesn’t work out that way….. Well, we will think about that later, won’t we? Right now, with that fat paycheck coming in every month, all you seem to be able to bother about are those new car, house or clothes.
But this is where 40% of young Americans go terribly wrong in their calculations. Most of them do not realize the worth of a future safety net like Income Protection Insurance until it is too late. Nobody wants to ponder on the possibility of a possible economic crisis or (heaven forbid), a probable disability in the family. The problem is that those investments and loans we accumulate during our youth are often a bet on the future.
And in some cases at least they can turn into the terrifying prospect of a liability in a future when that monthly inflow into your bank account is no longer assured. But we have already burnt our fingers twice that way. And we are starting to realize that they cannot afford to take those chances anymore in today’s brittle economic environment. The future may not be quite so far away as we would like to think and keeping a provision for disability insurance or cheap income protection insurance is the smart man’s only choice.
Income Protection Insurance (a.k.a Permanent Health Insurance) or Disability Insurance all pretty much work on the same basic premise. They can provide for a substantial settlement or monthly pension to the policyholder in the case of them being rendered unable to work full or part time due to a disease or accident. This insurance can be particularly helpful to people who may consciously or unconsciously expose themselves to risk of life and limb in their daily occupation.
Unfortunately, most people realize the worth of this kind of insurance only once they see that state benefits (say, statutory sick pay or incapacity benefits) cannot meet even the most basic demands of their and their family’s needs. Invest in disability insurance or cheap income protection insurance policies to forestall the possibility of a grim future.
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