Evidence suggests that you are three times more likely to suffer an ongoing illness or experience an accident at work than you are to die. In this light, income protection insurance is just as important as life insurance.
Income Protection Insurance
Income protection insurance covers you in the event that you become ill or have an unexpected accident that renders you incapable of working your usual hours or fulfilling your daily duties at work. If you purchase insurance for income protection, you can rest assured that you will be able to pay your bills and keep on top of your finances because your insurance provider will support you through this financially turbulent time.
In purchasing life insurance, you secure your family’s future in the unfortunate event of you passing away. Your insurance provider will pay out a lump sum to your family. This type of insurance will enable you to live your remaining days with a peace of mind that your family will not suffer financial hardship in the aftermath of your death.
Although income protection insurance and life insurance are different things, it may be possible to combine your policies of income protection and life insurance into one insurance plan. It is definitely worth purchasing both types of insurance if you believe you are likely to become critically ill.