I’m tired of the life insurance commercials. Their goal is to create fear and convince customers to purchase policies. They want us to believe they are our friends and are available to help us. But first, we must make your mind fearful. This is the only way that they can sell these policies.
There are also those ads that tell us we will all get sick at some point and won’t be able support our families. So you need this policy to protect your income.
What is an asset in a policy?
Anyone who is self-employed in any way should have a basic policy in case of a claim. You should ask lots of questions before you accept the policy.
These types of income protection policies can usually be tax-deductible.
But, as I stated in a previous post, business expenses can be deducted and not reimbursed. This does not necessarily mean that it will not cost you anything. It will, but it is still a shared expense.
Here are some things to consider when you take out a policy
You need to make sure that the income protection policy will pay you. As someone who has been on both sides of this fence, I can tell you that these questions are important.
What happens if I go back part-time?
What impact does my current skill have on the policy?
You may have to wait twice as long before you can make a claim. As per my policy, I have a waiting time of one month. This is the period I chose. This does not necessarily mean that I will get paid after the first month of sickness or injury. This is the qualifying period that I must wait to claim. After that, I must wait another month to be paid as they pay in arrears. According to me, I have a 2-month waiting period.
What will you pay me if my part-time job is resumed? Many policies will say that you can return to part-time work under physician advice. They will pay you a portion while you get back on your feet. They don’t clarify that they may refer to returning to a job in another field in some cases. This is not your usual occupation. They can immediately stop payments if you go back to your regular occupation for any amount of time, even if your doctor says you cannot return to full-time. This type of policy may allow you to volunteer in a soup kitchen as you get healthy.
You can use your existing skills and education to avoid being paid. My current occupation is covered by my policy. If I file a claim, they will only consider whether I can continue to do my usual occupation. They won’t take into consideration any of the 50 other occupations I did over my lifetime. Some policies cover this: If I’m a carpenter, and I hurt my back, but can still work as a driver, my insurance company will not pay. They will tell you that I can drive taxis for a living and that my injury doesn’t restrict my driving ability.
Remember
You will find a company that exists solely for their own benefit, despite all the publicity and social fear. They don’t usually want to be here for us. Instead, they are skilled marketers who exist to make money. If they can find a way to not pay you, then they will.
Remember that you may need to have this protection in case of emergency, such as when you are ill or injured. Your insurance policy should not be viewed as a liability. You need to make sure it covers you in case of emergency.
