Of course you have your insurance policies such as life, flood and auto, however have you ever thought about an asset of yours that could pay for all of these policies? One of your assets can be looked at as income and you should think about insuring your most valuable asset.
Income insurance comes in a few different types. You have disability insurance which is one of the most common ways for people to insure and protect their assets if sickness occurred. You also have life insurance which most people feel is enough but however if the main income earner becomes ill or is an car accident, then life insurance will not be of much use. Most financial adivsors will suggest that you obtain disability income protection insurance. This insurance will allow you to replace some of one’s income if something was to suddenly happen to the policy holder. Each policy will have different terms.
For the disability policy to start, you will have to wait a certain amount of time. The policy will usually start paying out right away after your sick pay and the amount may decrease over time. Some payouts may continue until the expiration date. If you want a lump sum payment, then you could look into what is called a critical illness insurance.
There is high costs associated with being sick. Even having health insurance does not cut into all the costs of medical bills. These costs can add up especially if you’re out of work. You can use not only disability insurance for these type of situations, but you can also use redundancy insurance which helps with being out of work. Redundancy insurance is also known as unemployment insurance which helps those if someone suddenly lost their job. This will allow you to still get payments on a monthly basis for a set amount of time. You also have mortgage protection insurance that can be beneficial for job loss. This protection will allow you to receive monthly payments that are equivalent to your monthly mortgage payments.
No ones income is guaranteed, this is why its important to look into some form of income insurance. This way you can protect your a major asset and use that asset if anything was to happen.