We have all heard about multiple forms of insurance such as life insurance, health insurance, death insurance, education insurance and so much more. Additionally, we have been taught the importance and benefits of purchasing these insurance plans. But have you ever thought about the importance of choosing to invest in income protection insurance plan malaysia? Have you ever even heard of this form of insurance? If your answer for both questions is no, keep reading to find out more!
What is income protection insurance?
An income protection insurance plan is for when you are unable to work due to illness or disability. As its name suggests, this insurance plan will ensure that you will be paid on a regular basis until you can go back to work or when you retire. Sounds pretty handy for any future mishaps, doesn’t it?
Through income protection insurance, you will get regular payments that will replace a portion of your income if you are unable to work due to an injury caused by an accident or through contracting an illness. As previously mentioned, you will receive payment either until you can return to work, retire, pass away or reach the end of the policy term, whichever occurs first.
Obviously, different insurance plans contain different terms according to the insurance companies and income protection insurance is no different. But typically, this form of insurance pays out between 50% and 65% of your monthly income if you are unable to work. It also usually covers most diseases that render you unable to work either temporarily or permanently. The definition of this incapacity is also subject to change according to the contract signed. Income protection insurance can also be claimed as many times as you need to while the policy is in effect.
Why do I need income protection insurance?
We would all like to believe that the world is a just place that is sensitive to the needs of others. However, if you’re enough of a realist, you know that this is almost never the case especially when it comes to your place of employment. In the event of any accidents or misfortune, it is unwise to count on the goodwill of your employer to keep paying you while you are unable to work. No matter how well you get along with your boss, it is encouraged for you to protect yourself by choosing to invest in income protection insurance plan malaysia. Incredibly few companies provide sick leave to their employees for more than a year.
If you remain skeptical about whether or not you need this insurance plan, check with your company to see what they will do if you are taken ill and unable to work for extended periods of time. Depending on your amount of savings (or if you even have any), losing your salary will most likely leave you unable to pay key home expenditures like mortgage/rent and utilities extremely quickly.
In light of this, choose not to gamble on you and your family’s well being, protect yourself from any eventualities in the future. Nothing is certain, not your health and certainly not your income.