Importance of Income Protection Insurance in a Person's Life

Income protection insurance insures the individual income and pays the benefits when they need. Income protection insurance gives benefits to an individual when the person is not getting income from his income sources.

Income protection insurance provides protection for the person in many ways, like loss of current income due to loss of job or unable to work due to some temporary or permanent disability. It is very much helpful for the employees, as in cases when they lose their current job or when they are unable to do work due to a disability like health problems or an accident, the insurance company provides financial security.

For example: If a person is temporarily disabled to do work due to a road accident, then the person cannot work and does not get income from his job. It is quite a risk for that person to manage his expenses during these days. If the is person already holding income protection insurance, then the insurance company gives some income at a percentage on his salary to manage his expenses.

Importance of income protection insurance in a person's life is as follows,
1.Secures person life style: With the help of income protection insurance, you can maintain your life style without too much disruption in the event of illness or serious injury that prevents you from working. This insurance gives money at a percentage on your salary, when you are disabled.

2. Provides safety for your existing savings and investments

If a person bhttp://www.blogger.com/img/blank.gifought a home with the help of a bank loan and suddenly the person looses his income due some disability to do work, then the person will not be able to pay the installments of the loan. If the person has income protection insurance, then insurance policy gives some money to the person, which allows him easily pay the installments.

3.It secures your children education If you have income protection insurance, you can give assurance for your children, that you are able to pay their school fees, exam fees and preserving their life styles even when you are unable to work. Due to all the above reasons we can say that income protection insurance is very helpful for a person.