Life is full of uncertainties and insurance is the best way of protecting yourself from them. Often people insure their health, home and assets but ignore their source of income. An accident can leave you partially or permanently disabled for the rest of your life and result in loss of income.
A majority of casualties arise due to road accidents and the numbers of accidents have increased in the past few years. Most accident-related policies have a permanent or partial disability cover where a fixed percentage of sum insured is paid to the policyholder depending on the nature of disability.
While choosing a policy you must opt for income protection benefits depending on your monthly expenditure. The benefits of monthly income are triggered only in the event of death or permanent disability. For temporary disability, income protection benefit would be available only for a brief period.
In addition to being a psychological shock, a sudden job loss will significantly affect your finances. An income protection policy can help you continue paying your loan equated monthly instalments (EMIs) at least for a few months.
Termination from employment due to illness is also covered under these policies. However, the cover is available only for salaried individuals. The cover is not applicable if you are fired for non-performance, or when you resign or retire from the job.
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