Income Replacement Insurance: Why You Need to Protect Your Income, Even on Vacation


Income Replacement Insurance

You can’t plan when and where you might experience a disabling accident or illness. However, with the right plan in place, you can protect your income and financial security no matter the circumstance. By using income replacement insurance, you can enhance your financial security while ensuring you have something to fall back on in case of a disability.

While it may not be top of mind when planning a vacation, you might want to consider the potential risks involved such as illness, high-risk activities, and more. It’s important to have a plan in place for anything unexpected that comes up on your travels.

In this article, we’ll discuss how income replacement insurance can help protect you and your finances when vacation throws an unexpected obstacle your way.

What Are My Chances for Suffering a Disability or Injury?

Did you know according to the Social Security Administration, “One in four twenty-year-olds will become disabled before their 67th birthday,” and “One in five Americans currently live with a disability.” That’s 56 million people!

What’s even more surprising is your chances of becoming disabled are higher than most people think. If you’re aged 30 to 50, your chances of suffering a long-term disability average 43.25%, and your average length of disability is five and a half years.

What Are My Risks Going on Vacation?

Now, when you factor in vacation, you’ll want to consider risks such as:

  1. Getting sick, from water, food, or air-born illness
  2. Hurricanes or other unexpected natural disasters or storms
  3. Foreign hospital expenses
  4. Needing a medical airlift
  5. Getting injured by participating in high-risk activities, like riding a motorcycle, ATV, or moped (this caused 13% of road traffic deaths in 2016)
  6. Taking risks around water, like swimming intoxicated or diving in unknown waters
  7. Hiking, getting lost or suffering an injury
  8. And more!

These risks are important to consider before planning a vacation. They’re meant to keep you informed and aware about the decisions you’re making and the likelihood of needing additional financial security in case anything arises.

How Can Income Replacement Insurance Help Me?

Your income is one of your most valuable assets. When the unexpected happens, you want to be protected against any loss of income that could affect your lifestyle, family, and goals. That’s where income replacement insurance comes in.

Income Replacement also known as Disability Income (“DI) insurance pays you regular income if you can’t work due to a sickness or disability. Typically, you can expect to receive about two-thirds of your earnings before tax from your regular job. While you won’t receive insurance right away, you can expect payments to kick in a minimum of four weeks after you stop working.

What Factors of Income Replacement Insurance Should I Know?

When it comes to your or your family’s medical history, you don’t need to discuss any personal or sensitive information with the person who sells you the policy. Instead, you can directly contact the insurer’s medical officer.

If you have a pre-existing medical condition, make sure you’re certain your insurer will be prepared to cover it.

Protect Your Income Today – Contact Advisors Insurance Brokers

Being aware of your potential risks and how you can protect yourself is the first step to protecting your finances. If you have any questions or would like to discuss income replacement insurance, contact us today. Our team is more than happy to help you learn more about your options!