Recent years have seen an increase in the continuing need for income protection insurance. Income protection insurance is an insurance policy that allows a person to receive monetary benefits when he or she is unable to go to work due to a natural illness or an unforeseen accident. Who needs this type of policy then? Majority of today's working class are now in their forty's to nearing retirement. This means that most of these people are now prone to falling ill or sick, or having health condition that could render them incompetent for their regular work. There was a time when people would ignore health insurance policies because they thought that they would be throwing away their money for nothing. Today however, the natural risk of sickness and accidents prove that there is sense behind such need. There are many people who have come to realize the need for financial support when they are retired and no longer able to work for a regular income. Those in their thirties have opened their minds and wallets to retirement plans or pension benefits which give a regular monthly check about twenty to thirty-five years from now. So why should there be no need for an insurance policy that allows a person to receive benefits in the near future? The difference between a pension plan and an income protection insurance is that people believe that getting old and retirement are an inevitable part of life. On the contrary, getting sick or being in an accident that could rob us of the ability to work is hardly on our minds. Having that income insurance will allow us to receive at least a portion of our regular salaries, come the time when we are not able to properly perform our jobs. Income protection insurance could be the primary choice for making sure that your life can still go on even if you physically cannot. It can provide up to 75% of the regular gross income until the policyholder recovers and can once again perform the duties for the job. If there are mortgages or loans to be paid, or the regular monthly expenses that need to be taken care of, the availability of income insurance can be the thing that saves you if you run into an accident or fall ill. Hardly any other insurance policy can offer the same assurance, as most policies fall well below what the policyholder regularly earns. If the idea of falling sick or being involved in an accident is too far-fetched to imagine, here are some facts and numbers that support that there is indeed a need. 2.63 Million people live off state benefits due to their inability to work. This includes those who are physically disabled, possibly due to injuries, or health issues that deem them unfit to work. 75% drop in regular income if a normal person is to live off state benefits. This means that only 25% of the regular income is being covered by the state policies that so many people rely on. 17 days is the time period that a person can live off of what they have if there is no longer any income available 33% of people believe they can live on only 35% of what they currently earn per month. This is still not covered by the regular state benefits which provide for only 25% of a person's monthly income.
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