Is your income protected with an insurance policy should something happen to your ability to work? This is a question many people never ask themselves.
When considering your insurance coverage, it is easy to naively ignore income protection policies. This is common because many people focus on making sure they have the medical care they need and a life insurance policy to cover major expenses in case they unexpectedly pass away.
Unfortunately, many events can take away a person’s ability to work and bring in an income without ending their life. Look no further than the last 18 months—No matter where a person lived and worked in 2020, the COVID-19 pandemic impacted everyone.
Income protection insurance helps ensure your income continues if you can no longer work. Most policies replace roughly 70% of the policyholder’s gross monthly income and may pay out for several months, a year or more, or until the holder retires.
Finding the coverage that is right for you depends on a few factors:
- The amount of your gross income you would like replaced.
- The length of time you would like to receive the replacement income.
- The length of time you would like the policy to cover you. For example, someone within ten years of retiring might choose a different income protection policy than someone in their early thirties.
While it is impossible to know what the future holds for any of us, it is possible to protect yourself and your dependents against sudden loss of income.
If you would like to learn more about income protection policies, grab a spot on my calendar. I would love to help you protect your income!
