The Importance of Insuring Your Income

Author:

Jaxon Kelly
We all know exactly how dependent we are on the income that we earn each and every month, and if you are anything like the majority of economically active people in this world, then you most likely experience a brief moment when everything you earn is sitting right there in your bank account on payday, where it stays for an ever so brief period before it gets transferred out to all the people that we owe money to. Anyone alive in this day and age knows that it costs money to live and the better you want to live, the more it costs to maintain that lifestyle. The moment our income is reduced or even removed altogether, everything that we work so hard to pay for, disappears in the blink of an eye.

You can\'t always see when your income is in jeopardy, but at least you can minimise the impact by taking income protection insurance through places like pricelineprotects.com.au where they offer you the chance to take out a policy in your name, to cover you in case something like that ever happens. Income protection policies are designed specifically for loss of income in one way or another, whether it is from being retrenched, being unable to work for extended periods of time, usually due to serious illness or injury, and in some cases it will cover you for a loss of business income as well. The cover for business is usually quite limited because it presents a totally different risk to the insurance company than any of the other types of incidences that are covered. The type of cover you receive from an insurer for this type of insurance is usually based on your existing income, the percentage of that income that you wish to insure and the period that you are covered for. Essentially, your income is monthly and so is the cover you receive. You therefore need to choose how many months you want the insurance company to pay for and how much they need to pay during that time. That is then measured up against your risk profile  to determine exactly how much you are supposed to pay for the cover each month and then you can decide if it is going to be affordable or not.

If the premium is too high, then you can play around with the parameters of your cover, like the cover period or the indemnity amount if you want to make it a bit more affordable. Once you have the cover in place, you can rest easy regarding your income.
Article Source: http://www.articlesbase.com/insurance-articles/the-importance-of-insuring-your-income-6160627.html
About the Author
The author of this article, Jaxon Kelly, is a full-time author on the subject of Insurance firms, he has a particular interest in insurance quotes online. On behalf of web site owner pricelineprotects.com.au he spends most of his time writing contents in return.