Income Protection Insurance for Chronically Sick People

What is Income Protection Insurance for Chronically Sick People?

This is a program that provides cover for people who have been working previously but are unable to do so due to some disablement. The coverage tends to include sickness, accidents and unemployment. A combination package can cover both. In the wake of rising healthcare costs and the reluctance of politicians to provide universal free healthcare, income protection insurance for chronically sick people has increased in importance. For obvious reasons the insurer will want to mitigate their risks by checking your health status. This was at the heart of the “pre-existing condition” debate that eventually led to the enactment of the Affordable Healthcare Act.

In any case what income protection insurance for chronically sick people provides is the ability to continue earning up to 70% of your previous income even if you are incapacitated. This is very useful for those people who operate in at-risk situations. Some of the policies that are on offer today include the guaranteed ones which will pay the same amount throughout the term. This can go on up to 25 years. The other alternative is a reviewable policy which is reconsidered in intervals. For the most part this is done on an annual basis depending on need.

When would a Chronically Sick People need income protection insurance?

Basically this type of coverage is triggered by a disabling event followed by a period out of work. They use the product to ensure that their salaries are not completely decimated by their incapacitation. The program has been credited with helping people survive the extreme poverty that arises out of illness particularly if there is limited health insurance coverage for the individual. Income protection insurance for chronically sick people is particularly important for those that are either self-employed or semi-employed because it is the safety net that they can rely on in the absence of a formal employer-supported package.

Why should a Chronically Sick People get income protection insurance?

The consequences of not being covered are dire. People have lost their homes and dignity due to life-changing events which are not their fault by any stretch of the imagination. That is why it remains a priority to access income protection insurance for chronically sick people as soon as you get a chance. This is true for those that are vulnerable or who suspect that they do not have alternative sources of income if their current job was to stop. It is very prudent and appropriate to consider the purchase and effective use of these policies because they help to mitigate the reality of uncertainty.