If you want to reach the very top in your chosen field, you’ll need to commit fully to invest in your career 100% with no hesitation. Unless you’re extremely fortunate, there’s really no alternative. The investment you make will primarily consist of your free time and energy, but you may also need to invest some money to make your future more secure. This is especially important if you have a partner, young children or anyone else who depends on you. You’ll need their unwavering support and cooperation if you’re to realise your career ambitions, and for that, you’ll need to convince them they have nothing to worry about as far as financial security is concerned. Let’s find out how.
Protecting Your Income With Insurance
There are various ways in which you could approach the task of securing your future and making sure you can always provide for your loved ones, but the simplest way, in our opinion, is to purchase income protection insurance. To find the best policy, you’ll need to request quotes from a few competitive insurers, but first, consider what your most important requirements are.
- Amount of Income to Replace – Most insurers allow clients to specify how much of their income they wish to be paid in the event they’re unable to work due to serious illness or injury, up to a certain percentage. The upper limit may vary from one insurer to another, but is generally around 70-75%. The higher your monthly expenditure, the higher the percentage of your income you’ll need replaced.
- Duration of Payments – There is normally a time limit on payments provided by income protection insurance when you’re unable to work. This could be 1, 2 or even 5 years if desired. Some insurers also offer extended income protection insurance, which is designed to replace the policyholder’s income until they reach retirement age if necessary. If you have lots of dependents relying on you to take care of them, an extended policy is well worth considering.
- Waiting Time Before Payments Start – All income protection insurance policies require policyholders to wait a certain number of weeks before they’re eligible to receive payments for being unable to work. The longer the period, the lower your premiums will be. If you find it hard to choose a waiting time, work out how long you can survive on your savings and then select an appropriate option. Give yourself a little leeway here in case you’re hit with some unexpected expenses at the worst possible moment.
It’s important to ensure that any policy you buy provides the exact coverage you need. However, you must remember that the policy features you choose will influence the overall cost, so it may be necessary to make some compromises.
Final Thoughts on Income Protection Insurance for Career Professionals
If you need to arrange life insurance too, look for a company that offers income protection as an optional extra with life insurance coverage. In this way, you should be able to negotiate a more favourable price.
Leave a Reply