Investing in Income Protection Insurance in South Africa

Investing in Income Protection Insurance in South Africa

The primary purpose of an income protection insurance plan is to continue to receive compensation in case you are not able to work due to unemployment, illness or accident. Have you ever imagine what would happen to you if one day you are not able to work anymore? How will you able to support your family without your income? Studies reveal that more than half of the population of South African will not be able to survive for more than fifteen days without their salary.

The income protection program will help put your mind at ease in a situation like this. However, it could be a little bit tricky to find the appropriate plan for you. This article will help you out in finding the right policy for you.

Things to Consider in Choosing the Right Policy

1. The things you want to include in the coverage

The first step in finding the right policy is deciding on what you want to be covered. There are two primary types of income insurance. The most common option is the one that covers your general income. This policy includes monthly payout that you can use for your everyday expenses. Another type of policy is where you tie it with your present debt. This will help you in paying your debt or mortgage.

2. What you want to be protected against

It is vital that you are aware that some plans will only compensate you if you are not able to work due to serious illness or accident. While others will insure you against retrenchment or unemployment. Make sure that you know what you are covered for.

3. Determine the term that you prefer to be covered for

The term length refers to how long the policy will pay you out. You can choose from long term income protection plan that will continue to compensate you until you are able to work again. The short term insurance policy refers to a policy that will pay out only for a specific amount of time. Thus, before deciding on any income protection plans, it is vital that you know how long you will be covered for. Keep in mind that the longer the policy will be, the higher premiums you need to pay.

4. Comparing policies are important

Now that you have decided how long you want to be covered and how much, it is now time to shop around and ask for quotes. There are lots of insurers in South Africa and these companies have varying rates, terms and conditions and fees. Make sure that you pick the one with several benefits and with affordable premiums. Using the internet to shop around for quotes is a good idea.

The above mentioned things you need to consider will surely help you in deciding where to invest and what type of income protection insurance in South Africa to choose from. You will definitely not regret your decision, neither your family. Being prepared is the best thing that you can do for yourself since you will never know when illness or accident occurs.

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