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Income Protection Insurance

There is something called “Income protection” for the corporate people. Generally a person gets retirement in the age of 55 years. However, if something happens when he or she is on the job Income protection insurance policy pays 65 to 75% of the gross amount of his/her salary. For example: If a particular person got some illness or accident because of that he /she can’t go to the office and because of this reason he/she can’t earn the salary. This is being compensated by an insurance company and the name of the policy is named as income protection policy.

Benefits of income protection insurance

Before the age of 65 years, if you are not able to go to your regular job that will help your family financially because of severe illness or accident. Income protection insurance provides you 75% of the income and income protection insurance acts also as an additional bonus and income. It may function as tax deductible but this type of benefit purely depends upon the individual situation. In case if you are a taxpayer the tax is being deductible for you. The policy money you receive will be valid for the particular period of time mentioned in your policy paper.

How long the Income Protection Policy does helps you?

The policy pays 65 to 75% of your gross salary amount until the 65 yrs of age, or it depends on the amount of coverage you select while taking the policy.

Income protection insures a product of saving life & income.

Income protection saves your life from poverty due to your disability to go to your job because of injury illness, etc.

Income protection insurance for the self employed people

Same 75% of your monthly income is being generated through this policy.

To which extent does the insurance company pay 75% of your salary?

This depends on the amount of premiums that we pay. There are various policies for accident, severe illness, etc., .But these policies won’t provide you the 75% of your salary amount for a long period of time income protection insurance can compensate 75% of your income.