Does Income Protection Cover Natural Disasters?
Income protection insurance is an excellent new form of insurance that is designed to keep your income coming in, whilst you are unable to work. You can determine what percentage of your income you would like to insure, and when this is determined, it will set out how much of your income you could receive, whilst being unable to work. This article considers what is covered by income protection insurance and what other policies you may need to get to bolster its features.
What Does it Cover?
The basic principal of income insurance protection is that it covers your income if you are unable to continue earning for a month. Being unable to earn is determined as something that will physically stop you from doing your job. Slipping a disc in your back, for example, could potentially make movement very difficult for you, and you would not realistically be able to work. In this case, income protection would kick in and you could expect to receive up to three quarters of your income, whilst you are unable to work.
Another scenario where income protection could be paid out is if an accident destroys your business. If you drive a mobile coffee van, for example, then a crash could stop you from being able to trade, and cover would be provided, whilst the damage is repaired.
Are Natural Disasters Covered?
Natural disasters are potentially covered by income protection, but it depends on how they affect you. If you are blocked from reaching work for a month because an earthquake destroyed a bridge, then you could expect to receive a payout.
If your home was damaged, however, and you needed to stay at home and repair it, then this would not be covered, because you would still be physically capable of getting to work, if you chose to. For this reason, it is always important to have other types of insurance set up, so that you are covered for everything.
Cover After Death
Income protection insurance will protect your wage, only if you are able to receive it yourself, and it is thus not a replacement for funds after death. It is important to also take out life insurance to support your family after death, because otherwise they could be left in financial trouble without your income.
As in the example above, wherein a home is damaged and needs to be prepared, having alternative insurance is essential, because damage will not be covered. For all property owners, home insurance is a very important policy to have, and protecting your investments in this manner is essential.
Suffering damage to your property is a dreadful occurrence, and one that will likely be financially challenging. To minimise the effects of any accidental damage, insurance is the best option, so that you can continue to work, whilst repairs are carried out, free of charge.
As in the example of the mobile coffee van, insurance of your vehicle is very important. If you are unable to work because of damage to your mobile coffee van, then you will receive income support, but you will not be given funds to repair the van. Insurance is essential for this, so that you can get back onto the road, as soon as possible.
It is also essential to insure your transport vehicle, because otherwise an accident could interrupt your ability to travel to work. This scenario would not be covered by income protection insurance, and would thus put you in a lot of difficulty, if you were not covered.