Back in the day, insurances are pretty straightforward. You buy a policy. You die. Your family gets the money. That’s it.
That benefit is called income protection.
With the ever-changing financial needs of clients, insurance companies now provide need specific policies such as retirement, estate taxes, medical coverage and college education (for your kids). Consequently, the demand for income protection have already decreased.
But I reckon that those new policies are just a by-product of income protection policies, and must be treated with equal importance.
Afterall, your family still needs to feed themselves, pay the bills, and have fun.
In this video, I give the things to consider when buying insurance for income protection. One take away that you can get from here is that this is not a permanent deal.
You’ll also see how your financial goals can (and will) change over time. That’s why this is not just an insurance video. This is also a self-evaluation episode where you can learn to have the foresight to estimate what your financial future might look like.
Disclaimer: Insurances vary from one company to another. Features, premiums and riders may, and will vary as well. What was presented to you are insurances’ general guidelines and concepts to help you with life’s crucial financial milestones.
The type of insurances mentioned does not constitute as a financial advise, and should be treated as information for education purposes only. Retire Before 65, its authors and partners will not be held liable for your misfortunes.
Reaching out for a financial adviser will be best, but I would always say that you always do your own due diligence.
When I bought my very first insurance (I was 19 yrs old then), this was my goal. Although I did not have any dependents then, I wouldn’t want my parents to pull money from their own pockets in case I die.
So if you’re just starting out with insurances, you may want to consider income protection as the first thing you’ll cover. After all, this is just temporary.
Note: This is the last video of the series I made called “Life Insurance Code: How To Spot The Right Insurance For You”. It’s a non sales-ey, purely educational training designed for insurance customers. Click here to watch the whole series (plus the bonus video).