Have you ever thought about what would happen if you were unable to work due to injury or sickness? Do you have a plan in place to be able to continue buying food for your family and paying the bills when they come due? Let’s face it, no one ever expects the worst to happen to them or one of their family members. But life changing events take place all the time, accidents and serious illnesses do occur, and 9 times out of 10 you won’t foresee them – so it is important to be prepared so that you aren’t left out in the cold.
Getting insurance is a common way for people to cover themselves for the unexpected, and it may be an option that you want to look into. These days insurance is available for a wide range of different incidents, and in some instances it can support you for extended periods of time. Some of the types of insurance that might be of benefit to you include:
Life insurance isn’t likely going to be that much benefit to you personally, but it will be of significant benefit to your family if you pass away. Having this type of insurance will help to ensure that your family doesn’t have to worry about money for the next couple of years while they get their lives back on track.
Income protection insurance
Income protection insurance is something that I have been seeing a lot of advertisements on the TV for lately. This type of insurance covers you if you are temporarily unable to work and will normally pay you out a percentage of your standard wage up to a maximum dollar figure. Normally income protection insurance is limited to covering you due to injury or illness where you are unable to work for a short period of time.
Disability insurance is similar to income protection insurance, but it can be for long term or short term disabilities. Wikipedia has a good explanation of disability insurance and the different sub categories of disability insurance that can be claimed.
Issues with Insurance
The only reservation that I have in recommending insurance to people, is that some insurance companies can be a bit shady. Some are terribly slow in processing claims, while others can refer you to the fine print and dispute the validity of your claim – so be sure to do your homework before signing up for any type of insurance.
If you find yourself dealing with an insurance company where you aren’t sure how to make a claim, or you feel that you are being unfairly treated, then sometimes it pays to consult with a good compensation lawyer to assist you with making a claim.
Having an emergency fund is another way to try and mitigate any unforeseen circumstances. The problem however, is that an emergency fund will only cover you for a couple of months at most. Obviously this is good to have, and it will come in very useful should a problem arise, but if you end up not being able to work for a long period of time due to a serious injury or illness, then you will need more money than your average emergency fund is likely to provide.
If you are concerned about having issues paying the bills or supporting the family when times are tough, then it is probably prudent to get started straight away on your emergency fund and to seriously consider researching insurance companies to see how much it will cost you to be covered by insurance and what type of payout you might receive.
Do you have a plan in place if you can’t work and bring in any money? Let me know below 🙂