Income Protection is something that each American should be aware of. Income protection is income insurance, and it is also referred to as disability insurance. The design of income protection insurance is to protect individuals that have been hurt or contract an illness that keeps them from their employment. The insurance is good with or without coverage through their employer and is an added policy that pays up to 75 % of the individual's wages. Individuals hurt, can apply for Social Security, but it is seldom that they get it. Most of the time, they are turned down. Therefore, having disability insurance as you income protection is crucial. Individuals also must be aware that what is covered under a company's plan may not cover all the expenses. To protect yourself fully, there is something called income insurance.

What is income insurance?

Income insurance is coverage that covers the person who is injured, either on the job or off the job, and is no longer able to perform their duties at work; they will receive a portion of their salary that they normally earn. If the person contracts an illness and is no longer able to perform at work they will also be covered with being awarded a portion of their regular salary.

Why is income insurance important?

The importance of income insurance cannot be stressed enough. Suppose you slip and fall while you are in the department store. Suddenly, you are in a position where you are in pain and are suffering. You are no longer able to perform you tasks at work, due to your back injuries. Your medical bills are piling up. You are receiving disability insurance, but, it is not covering all the expenses, and with the lost wages and medical bills, there is no light in sight. Your income insurance will reduce the stress as you are paid a portion of your salary each month.

When you lose your income, you are unable to pay your bills. That is the bottom line. Granted, you may be able to apply for Social Security Disability as well, but chances are you will be turned down. Your insurance may cover some of your bills, but that is just a portion of the bills. Without income protection, you could face terrible financial hardships.

There are different types of income insurance, and the portion of your wages that you will receive will depend on what type of policy you have. You could choose a policy that pays up to 75 % of your salary. This makes for a very valuable policy, which may be responsible for maintaining your lifestyle.

According to the National association of Insurance Commissioners, it is said that by the time a male reaches the age of 35 years old he has a 20% chance of contracting an injury or an illness for more than three months. This is a very high rate, and one that happens quite often. For females of the same age, there is a 33% chance of contracting an illness or being injured. With income protection, you are assured that you can maintain your lifestyle and will not face financial hardships.