Despite its usefulness, many people still don’t know what income insurance is all about. You might be more familiar with the purpose of insurance products such as medical, life, car, and home, but you could be wondering if income insurance is right for you. Spoiler alert – it most likely is. Your income is probably the most important asset you have. It is how we build the lifestyle we want and take care of those we love. Protecting that income in the face of unforeseen events is essential to protecting your future. To help you understand more about income insurance, we’re going to talk about why income insurance is so important and what circumstances could make it such a vital lifeline.
It would be great if they didn’t, but sadly sometimes the worst-case scenarios do happen. Accidents can happen both in and outside of the workplace, but no matter where they happen there is no guarantee that you are covered in the case of incurring a Permanent Total Disability (PTD). If you sprain your wrist and can’t go to work, you only have to use a few sick days and hopefully have medical insurance to cover any associated treatment bills.
But what if you had an accident that affected your ability to hear or speak, what if your sight was affected or you lost the use of a hand or foot? This scenario would be tragic enough on its own, but far worse if it meant you were unable to work and found yourself facing a permanent loss of income. A surgeon with nerve damage can no longer function in his previous role, a lorry driver who loses his sight can no longer transport goods, a football player who blows out his knee can no longer play with his team. When accidents result in a PTD, they can mean that an individual can no longer work in the way they did before or possibly even at all. If that happens, you need to make sure you are protected.
Breaking Down Long-term Disability
When we feel fit and healthy it can be hard to imagine a scenario in which we might face a long-term disability. But the truth is that the risk is far greater than you might think. Just under half of us are at risk of contracting an illness that results in a long-term disability and it is even higher amongst women. Over 90% of long-term disabilities are health-related, not accidental, which means we need to be aware of potential risks and how best to take care of ourselves.
The top five causes of long-term disability are mental, muscular, cancer, heart problems, and back problems. Whilst some people might be aware of genetic issues they have, no one can predict if they might develop problems or start to get sick. Chronic muscular or back pain could permanently prevent someone from sitting at a desk, heart problems could be a stumbling block to physical activity and mental health issues could have a variety of impacts from depression to cognitive decline.
If any of those things were to happen to you, how would you cope with a long-term loss of income? Finding yourself unwell is scary enough, without having to cope with financial issues. With income insurance you can make sure you are protected against that, which will not only give you the freedom to live life to the fullest now, it will be a crucial support in times of trouble.
In the case of an accident or illness, income insurance could make all the difference, to your treatment, your recovery, and your future. There can be no more sensible financial decision than protecting your future and that of your loved ones. Income insurance is the right choice for your well-being and peace of mind.
See our income insurance pricing here.