Just like anyone else, you, as a company director, need income protection insurance. The claim for company directors depends on the extremity of illness or accident. You could take the risk of not receiving your salary for a few months to a few years once you are insured.
What Risks Do Company Directors Face?
Unlike workers who often are prone to physical injury, company directors still have little chance of getting injured physically. Aside from injuries, income protection policies cover the following illnesses such as cancer, stroke and heart disease. A great number of health conditions become more common as people get older. Company directors who are in their 40s or older must take into consideration availing of this insurance. They also need to ponder on the insurance cover risks like:
- Stress- Company Directors are susceptible to stress most of the time due to the pressures of the working environment they work for. While it is true that income protection policies won’t cover mental illness, stress can become a great contributor to numerous physical health conditions that might force company directors to be off work.
- Liability- Company Directors who have important responsibilities can be accountable when things fail. And so, most company directors consider different professional liability insurance.
What You Need to Know About Income Protection Insurance
To quickly summarise some key points, check out the following:
- Income protection insurance covers you when you are unable to work due to sickness or accidents
- Back to work assistance is often available following any period of long term sickness
- Income protection payments are tax-free and will consist of a percentage of your typical earned income
The knowledge that you have income protection insurance assures you that money will continue to come into the household in the event of a serious accident or long spell of sickness. Your regular bills and payments will not cease if you are unable to work, so making provisions to counter long spells when you are unable to attend work is the best way to handle this eventuality.