Everything in life is uncertain, even life itself. Nobody can predict what may happen the next moment. Insurance is one of the ways to prepare yourself to any unfortunate incident that may occur in the future and protect your near and dear ones from its effects, at least monetarily. Income Protection insurance is one of the ways to fight unpleasant surprises like sudden illness or disability.

 

People are aware of life insurance and asset insurance, like car insurance, home insurance, etc. but very few are aware of the income protection insurance plan. It is a relatively new concept and not only covers the person affected, but even the organisation that he works for. The main aim of this type of insurance is to generate a steady and regular income for a person who has suddenly taken ill or developed a handicap or disability.

A person who covers himself under the income protection insurance plan, receives a monthly amount in case he is unable to go to his workplace because of sickness or disability. Most of the times people are unaware that such kind of financial protection actually exists. On other occasions, they either do not take it too seriously or do not feel the need for it as they have their other assets and savings to fall back on. But here too, the question of an unpredictable future arises. Not to forget, there is a large section of the population that live on a hand to mouth existence, with no assets and savings to fall back on. This type of insurance is a life saver for them.

The list of people benefiting from such financial protection is not limited to the affected person and his family, even the organisation that he worked for benefits from this insurance plan. This cover provides an advantage to both the parties, i.e, the employee who is not able to work for long periods, and the employer who suffers the loss of an employee. An employer will not have to pay the employee a monthly income from his pocket. By covering the employees under such a plan, employers can provide a sense of security to the employees, hence facilitating retention.

The income protection insurance plan is a must for working professionals who rely on their monthly pay packet to maintain a decent standard of living. It is the duty of the organisation and the financial advisors to spread awareness about this type of insurance cover and help people secure their future.

 

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