The potential loss of our primary source of income is something that has given many people sleepless nights and near-debilitating anxiety. As living costs rise and uncertainty looms over many industries, a rising number of household breadwinners experience stress and increased pressure, knowing they cannot afford to be absent from work, even for a few days.
This article examines the basics of income protection insurance, focusing on how it can help protect income for self-employed individuals, such as bloggers, and the key factors to consider when sourcing coverage.
What is Income Protection Insurance, and Why do Bloggers Need it?
In a nutshell, income protection insurance policies provide financial support to policyholders who are unable to work due to illness or injury. This ensures they still receive a portion of their income and do not suffer financial hardship while recovering.
Since blogging is often a self-employed, precarious, and unpredictable profession, income protection insurance can be particularly appropriate. If blogging is the primary source of an individual’s income, researching, sourcing, and purchasing this safety net can be an astute decision.
Income Protection Insurance: Factors to Consider
Policies vary, so it's essential to compare options and select one that suits your needs. Some critical aspects and features of many policies to bear in mind include:
- Some policies only cover a percentage of your earnings
- Policies may offer short or long-term benefits
- Official medical reports will be required to confirm the validity of any claim
Applicants must be:
- Permanent resident/citizen
- Employed/self-employed for 20-30 hours per week
- Aged 18-59—A standard condition, although certain occupations may be subject to alternative age restrictions
Exemptions and Conditions that Negate a Claim
Although policies differ, and it is critical to scrutinise each policy and note any factors affecting your ability to claim, it’s safe to assume most will have the following exemptions:
- Criminal activity
Any inability to work resulting from injuries or incarceration due to criminal activity
- Suspension from duties
Permanent or temporary suspensions from work, irrespective of fault or subsequent reinstatement
- Self-harm
Self-inflicted injuries
- Pregnancy
Pregnancy or maternity-related health issues
- Acts of war
Do I need Income Protection Insurance?
Each individual is different, and their unique circumstances must drive the decision whether or not to purchase a policy. However, it is relatively safe to say that many bloggers are not in a position to experience a sudden and total loss of their primary income. If financial security and the peace of mind that comes with knowing your income is protected in the event of injury, illness, or other incapacity sounds attractive, then income protection insurance is a suitable option for you.
Income Protection Insurance for Bloggers: Final Thoughts
Insurance policies are not fun to spend too much time dwelling on. They represent an expense that we hope we will never need to use, and focusing on thoughts of injury, incapacitation, and even death is not high on most people’s ‘to-do’ lists. However, income protection insurance is a powerful financial tool that takes the strain and allows us to maintain our preferred standard of living when things don’t go according to plan. Even if, as we hope, we never have to make a claim, the sense of relief we get from protecting ourselves and our loved ones against worst-case scenarios is worth the premiums alone.