Common Questions People Ask About Income Protection Insurance
You probably view your paycheck as your lifeline to stability throughout your life. So, what happens if you become disabled and can no longer work? What if your paycheck dries up?
No one should have to worry about what they would do if a disability forces them off the job. The good news is that if you purchase an income protection insurance plan, you will have a great benefit to help you at one of the most vulnerable times of your life.
Most people have a lot of questions about income protection benefits. Here, we’ll answer a few of them to help you get a better idea of just how beneficial this coverage can be.
1. What is income protection insurance?
Income protection insurance provides you an income in the event you suffer an illness, injury, disability, or other medical condition that causes you to stop working.
2. Is income protection the same as workers’ compensation?
Both income protection and workers’ compensation can pay you a benefit if you sustain an illness or injury. However, workers’ compensation will only pay if you sustained that disability while on the job. Income protection provides you coverage for a disability while on the job but also when you are not at work. Income protection provides you coverage 24 hours a day, 7 days a week, 365 days a year.
3. Is income protection the same as health insurance?
Income protection and health insurance are both separate plans. Your health insurance will pay for most of your medical bills, while income protection insurance can pay for numerous everyday living expenses. You can use it to pay for your medical bills if you wish, of course.
4. How can I use income protection money?
You can spend your income protection payouts in any way that you like. Just like you might use your regular paycheck to pay bills, maintain your home or shore up your savings account, you can do the same with an income protection payout.
5. Can I be retired and still receive income protection?
You must be employed to qualify for income protection insurance. Income protection plans are not pensions or other retirement income solutions. However, many plans can pay you up until your retirement if you are able to verify that your disability has permanently disabled you. This rule will vary based on the plan you carry, however.
6. Does income protection pay me my full paycheck?
Depending on your plan, you would receive anything from 50 – 80% of your paycheck, based on the plan you choose.
All income replacement plans vary, so the best thing for you to do is to work with Brokerage Solutions, Inc. to discuss how to structure the right plan for you. We’re here to help you customize your benefits in affordable and exceptionally beneficial ways.