Many people worry that they could not survive on their savings alone, and the thought of skipping work due to being sick or injured gets people paranoid to the point that it created problems that weren’t even there in the first place. Although contractors’ salaries are higher than your average office worker’s, they are the same when it comes to surviving based on savings alone.
Fortunately, there is a lifeline called Contractor income protection, which covers up to 80 percent of their monthly salary when they’re too sick or injured to work. This type of insurance comes in handy during emergencies and is a good safeguard in times like this where a global pandemic threatens us. Check out the other reasons to get an income protection insurance below:
It Helps Secure Your Finances
We know that you got payments to make; whether it’s your monthly bills, car payment, or your house’s mortgage payment, it all will fail without sufficient funding. But when we are struck with a stroke of bad luck like being involved in a car accident, having a bad fall, or simply contracting the virus, chances of us needing a long time to recover are pretty high, which means we won’t be able to work and earn our pay.
The good news is, if you have an income protection insurance, you will still be able to get your monthly payment for up to 80 percent that includes your pension, dividend, and national insurance contributions. That way you can still make payments for all of your dues even when you’re off work.
It Covers Both Physical and Mental Health
Some insurances won’t cover one or the other, and it could be frustrating because we don’t know what health problems we will have in the future, and certainly no one plan to have health issues. However, the beautiful thing about income protection insurance is that they don’t differentiate your health problems; they don’t limit themselves to cover only your physical or mental health, making them a superior insurance choice to get!
It Helps You Put Your Mind at Ease
Being unable to work while stuck convalescing in bed can frustrate an individual to the point that their health could take a turn for the worse. Because they can’t do anything with their situation, they could have breakdowns out of their doubt and uncertainty like “How am I supposed to pay for my expenses?” or “Will my savings be enough?” that certainly won’t help them recover faster.
However, there would be no need for concern when your name is on an income protection insurance. An income protection insurance helps keep stressful times more enjoyable because you know that they have your expenses covered, so you can focus on recovering!
The Bottom Line
If you’re unsure if you can live on your savings alone, then you should probably get yourself covered with an income protection insurance to prepare you for a rainy day. Of course, no one plans to get sick or injured but these things don’t exactly come with a schedule, so it’s best that we prepare a lifeline to protect our finances when they occurred.