Maroc - NEWSDAY.CO.TT - A la Une - 14/Aug 02:38

Income protection: The engine of your life plan

Every dream you hold for yourself and your family, whether it is owning a home, educating your children or enjoying a secure retirement, rests on one foundation – your ability to earn an income. We readily insure our homes, cars and even our phones, yet far fewer of us protect the one asset that makes all those possible – our paycheck. Income protection is more than just replacing lost earnings. It is about preserving your lifestyle, protecting your goals and keeping your family’s future secure when life takes an unexpected turn. Pause for a moment and imagine this – If you had suffered a stroke yesterday, what would your family’s position be today? Or, God forbid, if illness or an accident suddenly stopped you from working for months, how would you cope? The bills would not stop. Loan payments, grocery expenses and daily living costs would keep coming, even as your income might be compromised. Without a steady income, many families are forced to drain their savings, sell assets or rely on relatives to stay afloat. We have all seen it – fundraisers, bar-b-que tickets and donation drives – to help someone meet urgent medical expenses. Income protection is, therefore, the safety net that turns this uncertainty into security. In a world where a single diagnosis or accident can change everything, income protection is not a luxury – it is priceless. [caption id="attachment_1172027" align="alignnone" width="910"] -[/caption] Most of us are familiar with life insurance. It provides your family with a tax-free lump sum in the event of your death, ensuring debts are cleared and your loved ones can maintain their standard of living and dignity. It is equally important to make sure your life insurance coverage is sufficient. A simple rule of thumb is to have a sum insured of at least ten times your annual income. For example, if your annual income is $200,000, your coverage should be at least $2 million. Critical illness insurance, on the other hand, provides a tax-free lump sum if you are diagnosed with a covered critical illness. This payout allows you to focus on recovery while maintaining your standard of living. However, critical illness insurance should not be confused with health insurance. While health insurance covers medical bills, hospitalisation and medication, critical illness insurance replaces the income you may lose during your recovery period. It is, therefore, important to ensure that your coverage is adequate. A simple rule of thumb is to have a sum insured of at least five times your annual income. For example, if your annual income is $200,000, your coverage should be at least $1 million. Remember, the strength of your family’s tomorrow depends on the choices you make today. By prioritising income protection, you carry forward the legacy of resilience and care that defines a community driven by dignity. Protect your dreams and your loved ones, because they deserve nothing less.   The post Income protection: The engine of your life plan appeared first on Trinidad and Tobago Newsday.