Home > Business Insurance > Property Insurance > Money > Assessing the Need for Income Protection Insurance in Your Financial Plan

Assessing the Need for Income Protection Insurance in Your Financial Plan

By Darragh Timlin on November 30th, 2023

As a business owner, your income is likely the engine that keeps your enterprise going. An unexpected loss or interruption of that income stream could put your business and personal finances in jeopardy. That’s why having an income protection plan should be a key priority.

Income protection insurance, also known as financial protection insurance, salary protection, or income insurance, provides a financial safety net in case you can’t work and earn an income due to illness, injury, or other circumstances.

This money insurance is an important component of any financial plan, especially for small business owners and the self-employed.

The Importance of Income Protection Coverage

When assessing your finances and insurance needs, here are key reasons to consider income protection coverage as part of your overall plan:

Replace Lost Income During Disability

One of the biggest risks to your income as a business owner is becoming unable to work due to an illness, injury, or accident. While you may have some savings to tide you over, an extended disability could severely hurt your finances. 

Income protection insurance provides ongoing payments that replace a portion of your pre-disability earnings. This earnings insurance or paycheck protection gives you an income source while dealing with health issues so you can still afford necessities and not liquidate assets.

Maintain Lifestyle After Critical Illness

Critical illnesses like cancer, stroke, or heart disease often require extended treatments and recovery time. Income protection can provide income insurance that enables maintaining your lifestyle through this difficult period, unlike relying solely on savings which can quickly become depleted. 

The financial coverage can help pay for additional medical bills and household expenses while you take time off for treatments and recovery.

Support During Maternity or Paternity Leave

When starting a family, parents need time away from work for the health of parent and child. But this can mean a big financial hit, especially for small business owners who don’t have access to paid leave. Income protection can offer income protection like maternity and paternity benefits that provide earnings insurance to replace some of the lost pay during this vital family time.

Cope with Temporary Disabilities

Shorter-term disabilities from injuries, surgery, or health events can also sideline business owners and employees. Protection policies can provide wage insurance or salary insurance that replaces income during recovery periods lasting several months or less. This earnings protection gives you breathing room to fully recover without destroying savings or racking up debt until you can work again.

Ensure Ongoing Income for Employees

As a business owner responsible for employees’ livelihoods, having income protection shows you value your staff and want to ensure paycheck insurance for them if unable to work. It provides them financial security insurance and income safeguards like long-term disability or illness cover. This gives peace of mind that their salary is protected if health issues arise.

Consider Policy and Provider Carefully

Not all income protection insurance policies are equal. Carefully assess options to find coverage well-suited for your needs and budget. Look for providers that offer:

  • Flexible payment periods – Choose monthly, quarterly or annual premiums.
  • Multiple benefit amount options – Select portion of income to replace.
  • Own occupation protection – You can claim if unable to perform your specific job due to illness or injury, not just any job.
  • Comprehensive claim payments – Benefits for varied circumstances beyond just accident and illness.
  • Premium protection – Premiums remain static rather than increasing with age.
  • Fast claims processing – Quick decisions and payments within days if a claim is accepted.

Protect Your Income With Brisco Business

Income protection should be a foundational element of any financial plan when your income is crucial for supporting your business, lifestyle, and obligations. While precautions are taken, there are always risks of interruptions to your earnings. 

At Brisco Business, our money insurance offers flexible, comprehensive financial coverage to suit your unique situation. Compare quotes today to discuss your needs and get a quote tailored just for you. With the right income protection insurance in place, you can face the future knowing your finances are protected.

Darragh Timlin

With over 25 years’ experience, Darragh is an expert in all things insurance. Starting his career in commercial property underwriting, Darragh has worked for a number of global insurers and is now Managing Director of Brisco Business, part of the wider Henry Seymour Group.

All articles by Darragh Timlin

Protect Your Business Today!

Find comprehensive business insurance at the right price. Quickly and easily compare quotes from leading insurers and choose the perfect policy for you.

Compare Quotes

Our Reviews