Income protection insurance, is pretty self explanatory, as it protects your income. It can pay you upwards of 75% of your income in the event you were unable to work. Reasons may include illnesses, major traumas or accidents. It will protect you for the length of you time you are off work and, depending on your occupation, if you are unable to return to work, it continues payment until you retire (age 65). The most obvious reason for insuring your income is so that you can continue to provide for those that depend on you. That includes paying the mortgage, buy groceries and carry on financially until you return to work.
As with any decision to insure something, it truly depends on what impact its loss would have on you. In the case of income protection insurance, you are insuring your income. So the question is what impact would losing your income have on you. Would losing your income mean being unable to pay mortgage; support your children; or, continue to save for your retirement? Obviously those questions are irrelevant if these aren’t a concern in your life at this point. For younger people just starting out, chances are these are not going to be an issue and other insurance products, like critical illness insurance, may be a wiser investment. Even forgoing this insurance and simply saving and investing the money you would otherwise be spending on premiums can be smarter.
There is definitely some redeemable aspects of income protection insurance, but it truly depends on your current financial situation. Having this financial situation assessed by a professional advisor is the surest way to know if income insurance protection is smart choice. Far from being a salesperson, today’s insurance brokers are licensed professionals who are there to help and guide you with your financial decisions.
LifeCover.ca has a network of representatives across Canada who are all licensed and as committed as us. We make insurance easy and help you get the insurance you need at a price you deserve. Request a free comparison quote and discover what thousands of Canadians already know about saving money on insurance.