Most business owners usually have sufficient cover in place for their employees however many still fail to insure their own income. But what is this income protection insurance that they need to know?
The Key Facts About Income Protection:
- Income Protection Insurance (IPI) is an insurance policy that pays benefits to incapacitated individuals who are unable to work due to illness or accident.
- On average, the IPI limit reaches approximately 70% of the worker’s gross earnings – this percentage is subject to your amount of annual income.
- Most IPI policies also encourage the use of the proportionate benefit – a reduction in payments if you, as the aggrieved worker, opt for a part-time or lower-paying job after the recovery from the incapacity.
Why Should Small Business Owners Get IPI?
It is very important that small business owners consider income protection insurance. Unlike employees, small business owners won’t be entitled to the included benefits of an employee such as Paid Sick Leave, Annual Leave and Work Cover.
Therefore, you need to make sure that you have another means of income that will cover the loss of your business income.
The benefits associated with an appropriate IPI policy are plentiful, including:
- Benefits are payable immediately after you become incapacitated.
- Benefits are paid on a regular basis (weekly or monthly) and are tax-free.
- As long as you continue to pay the premiums, your insurance company cannot cancel or refuse to renew your existing policy.
- A waiver of the premium option can be available in certain circumstances.
- So, what are you waiting for? Small business owners– protect your income today!