Insurance advice on protecting income
Protecting your income
Your pay is what keeps the household running. This page explains, in plain words, how three kinds of insurance can help if it stops.
Start with the question
If you could not work for three months, how would rent or the mortgage, food and bills be paid? Write the answer down first. It shows which gap, if any, insurance could help with.
Check what you already have. Many employers offer a group plan, and it may cover less than you expect or end when you change jobs.
Disability insurance
Disability insurance replaces part of your income if an illness or injury stops you working. The policy sets how much is paid, after what waiting period, and for how long.
Read how the policy defines disability. It decides whether you are paid for your own job or any job.
Critical illness insurance
Critical illness insurance can pay a tax-free lump sum if you are diagnosed with an illness the policy lists. You choose how to use it: bills, time off work, travel for care.
Each policy lists the illnesses it covers and the conditions for payment. Ask for that list in writing.
Life insurance
Life insurance pays the people you name if you pass away. For a family that depends on your income, it replaces that income for a set period or for life, depending on the policy.
Price and eligibility depend mainly on age and health. The insurer makes the final decision on any application.
Questions to bring
- What does my group plan already cover, and when does it end?
- What is the waiting period before payments start?
- How does this policy define disability or a covered illness?
- What is not covered?
David is licensed in life and accident and sickness insurance. This page is general education and is not personal advice.