Income protection- A complete guide to you

If you are incapable of work when you are too much ill, worried to pay your bills and earn daily bread Income protection (IP) insurance will be there as a rescuer of your miserable unsecured financial life. You will be secured in uncertain future if you choose a proper Income protection insurance policy. Hence Income protection insurance should be your first choice to make immediately. IP provides you a tax free regular income during the period of incapability of work. It provides maximum 75% of your income starting from a period recognized as ‘deferred period’ and will not stop to pay until you get back to work. Deferred period could be chosen as 4, 13, 26 or 52 weeks according to your policy. Monthly policy costs less if the deferred period is long. Significance of having Income protection insurance: Future of a person could not be foretold. There is an uncertainty on each step of your life. You may be a victim of a sudden accident at any time without a prior notice that could make you incapable of work temporarily as well as permanently. Suddenly a dark cloud of misery could bring upon on you. If you have to face that horrible condition will your employer continue to pay you forever, may be not. May be your savings are not sufficient to pass your whole life without having any income. Regarding to the statistics information of the National Association of Insurance Commissioners (NAIC) it has been indicated that 20 % of the male has a risk to be disable to income because of serious physical or mental injury for a period of more than three month before the age of 35 years. Studying the same case on female it has the 33 % probability of being victim of the same experience. There will be many policies for insurance. You have to choose carefully which one is appropriate for you and your family. You have to be sure that you have understood every terms and condition of the policy. The cost will depend on your detail history as having smoke, current job, previous serious diseases etc. it is recommended to start with a higher cost if you can afford it.