Many of us take our income for granted. We rarely think what our lives would be like without our steady stream of income, since we’re used to receiving it for so many years. People often feel that personal financial disasters only happen to other individuals.
But that’s not the case. It’s wise to stop and think how would we pay our bills if we were suddenly injured or fell ill. There are some preparation you can take to prevent or diminish this from happening to you.
One of the best financial decisions you can make is to take out disability insurance. This is where in return for paying fixed premiums over time when you’re working, in the case of disability you’ll be able to collect regular payments or a lump sum to help cover all your expenses until you recover.
Disability insurance has been around for some time now. It’s highly effective for most any employed individual. You can shop around for premium and payout information at several insurance brokers who offer it. Look for the highest payouts and the lowest premiums.
You can compare income protection quotes either in person or online. You can also receive printed literature from most insurance companies to compare income protection quotes.
Without this insurance, the loss of your income would drastically affect your life. Unless you had an emergency nest egg of savings that covered at least six months of living expenses, you could be in real trouble.
You might have to try to obtain some money from your relatives or friends, your employer, or get an equity loan on your house and live on that until you get back on your feet.
But the good news is that this insurance is not really expensive. You can qualify for it whether you work for somebody or if you’re self-employed.
The amount you qualify for is based on your current salary, as well as on your age and health condition. It’s vitally important to see if you indeed qualify because you might not be able to pay any of your more pressing bills such as the rent or mortgage, your health insurance premiums, the car payments, or even buy your food.
People of all ages can qualify for this type of insurance. It’s one of the most intelligent financial decisions you could ever make. You might already know someone who collects or has collected this insurance. Ask them exactly how it helped them out so you’ll get more of an idea of how it can help you too.
Just remember, this insurance is meant to cover only temporary loss of income, not permanent. So it shouldn’t be looked at as a weakness that you have to rely on it if and when the time comes.