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Protect Your Income: What To Do If You Can’t Work

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David Huckshttps://myrtlebeachsc.com
David Hucks is a 12th generation descendant of the area we now call Myrtle Beach, S.C. David attended Coastal Carolina University and like most of his family, has never left the area. David is the lead journalist at MyrtleBeachSC.com

Life throws us many curveballs. And when it comes to our careers, sometimes we’re not even sure how much time or energy we’ll have in the future. It’s essential to plan for the day you can no longer work. There are many ways to protect your income so you can focus on your recovery and provide for yourself and your family if necessary. 

Here’s what you need to know about protecting your income, so you never have to worry about money again.

Protect your income

If you’re unable to work, you’ll want to protect your income and your financial stability. You have a few different options for this.

Before you make any commitments, you must know that these types of cover only payout when you require them. You cannot cancel them and get your money back, nor can you stop partway through the term without losing everything you have paid in. If you aren’t confident you can afford the repayments, think carefully about how this will affect you.

While living with no money due to an accident or illness isn’t ideal, neither is wasting your money on any form of income protection only ot default on payments and potentially make the situation worse.

Retirement planning

Retirement planning is still about saving for the future, but the time frame is much longer.

Retirement planning is not about saving for your next vacation or your next big purchase. It’s about saving for the time when you can’t work anymore. That could be because you’re too old, too young, too sick, or too injured.

With retirement planning, you’re setting aside money now to cover the costs of your future needs. For example, if you stop working soon and need to pay for caregiving or medical expenses, you’ll have money set aside to cover those costs.

It’s never easy to know what’s coming next. And that’s why it’s crucial to have a plan in place to protect yourself financially. By being proactive now, you’ll be prepared for whatever life throws your way.

Disability insurance

If you have a disability insurance plan in place, it could be a lifesaver. Disability insurance protects your income if you’re unable to work for a prolonged period due to a chronic illness or injury. Disability insurance is a financial safety net that will pay a percentage of your income each month, so you don’t have to worry about paying your mortgage or other debts. Make sure you are aware of the disability definition and what this means to your insurer.

If you’re unable to work for an extended period, disability insurance can provide much-needed protection. If you’re not already invested in a disability insurance plan, it’s worth investing in one now. In many cases, it’s the only answer when the unthinkable happens.

Life insurance

Life insurance is a powerful tool for those who can’t work because it ensures that your family will be taken care of after you’re gone. It provides a cash value that can be paid out as a lump sum or as installments to your beneficiary.

Some policies also offer a death benefit that pays out a lump sum upon the policyholder’s death. Choosing the right policy for you will depend on the following:

  • How much do you need to protect?
  • How long do you need to cover for?
  • What policy best suits your needs?
  • What can you afford to pay monthly?

When it comes to determining the right policy for your life insurance, you have three different types to choose from;

  • Straight life insurance: Provides an income that lasts as long as the policyholder lives.
  • Variable life insurance: Provides a predetermined income or a variable income that changes throughout the policyholder’s lifetime.
  • Universal life insurance: Provides a predetermined income or a variable income that changes throughout the policyholder’s lifetime but has no guaranteed number of years.

Long-term care insurance

Long-term care insurance is insurance that helps those who need long-term support with their everyday activities. Long-term care often includes help with activities such as eating, bathing, dressing, and toileting.

Long-term care insurance is often expensive and not one-size-fits-all. Consult with your advisor to determine if this type of insurance is right for you.

It is also not typically part of a company’s benefits package. You can purchase either a private or public policy, so exploring your options before buying the plan is essential.

You have many different options available to you when it comes ot protecting your income. While some policy types will pay out lump sums when specific criteria are met, others will only pay out a percentage of your earnings, not the total amount.

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