Income Protection Planning
Every professional/working class person who is providing for the family has had that question in mind, "Who will look after my family when I'm not around?”. It is quite natural to wonder how your absence will affect the financial and the emotional stability of your beloved family members. The significance of Income Protection Plans arises from such existential questions. These incredible plans will ensure regular income pay-outs that will help your loved ones maintain the lifestyle you worked hard to give them, even when you are not there.
How Does Income Protection Work?
For a regular term plan, in the event of the demise of the insured person, the nominees receive a lump-sum amount as a death benefit. There are a lot of disadvantages to this, which in most cases, the oblivious use of this fund without saving for the future or without proper planning.
Income protection planning is designed to provide regular (usually monthly) pay-outs, like a fixed salary, so that the beneficiaries can go on with their daily routine, without the death of the insurer affecting the financial stability of the household, as long as the term ends. Thus, the basic idea of such plans is to offer an Income Replacement, on the death of the insured. The nominee gets regular monthly income known as a monthly benefit for the entire working life of the insured, normally up to the retirement age, which is 60 years.
Why Do You Need It?
You certainly need an income protection plan if:
1. You are the single earning member of your family.
2. You want to provide regular income to your loved ones even if you are absent.
3. You want your insurance plan to adjust itself to the increasing cost of living.
4. Your family’s financial stability is dependent on you.
5. You want your family to be protected financially if you suffer death or disability.
Seeking Professional Advice
Finding the best possible income protection plan based on your lifestyle and professional persona can be easy when you extend yourself to an experienced insurance professional. Mr. Vijay Madhavan has over 25 years of experience in the insurance field and can provide masterful advice in choosing the right plan.