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Published on 26 September 2023 at 17:40

Charles Darwin's Theory of Evolution reveals a fundamental rule of nature: only the strongest and healthiest among us can endure the test of time. Those who are most able to adjust to and recover quickly from changes in their environment will always outpace their peers.

In Darwinian terms, these were shifts in heat, temperature, time, and reproductive ability; for contemporary humans, these include deteriorating physical and mental health, a stressful work environment, extended illness, and layoffs, leading to an unstable revenue stream.

Who would have guessed that the same caveman would one day spend his days typing away at a computer? There's little doubt that our ancestors enjoyed a more tranquil way of life, but today's standards for happiness are different. We work not just to survive but to live comfortably. Who wouldn't dream of taking two annual trips abroad and driving a Lamborghini?

But there are things we want to avoid thinking about since they can put a wrench in our plans. Even if we make every effort to be in tip-top shape, being laid off from our work, falling ill, or having an accident might put a quick end to those plans.

Unfortunately, there is no way to predict when a negative omen will appear. A reliable source of funds to cover our expenses is the only thing that might keep us grounded and secure under these conditions.

However, we won't be able to cash in on this opportunity until we put on our crisis management hats well in advance of when we'll need them. Purchasing a solid income protection insurance policy is one sure-fire way to safeguard yourself and your loved ones.

Everyone who earns a living need this, yet few people know what a difference it can make in their lives.

Financial security in the event of a loss of income is what income protection insurance is all about.

If you are unable to work because of a sickness, disability, or impairment, Income Protection Insurance can provide you with tax-free monthly pay-outs for a set amount of time.

You are assured of a regular payment until the earlier of your return to work, retirement, death, or the policy's expiration. Unlike traditional health insurance, this option only provides a one-time payment to help with unexpected medical expenses. With the monthly pay-out from Income Protection Insurance, you get to set your own priorities.

How much does it typically cost for income protection insurance?

There are a lot of moving elements that determine how much money you'll have to fork over. The most important ones are your age, occupation, smoking status, medical history, the types of illnesses that are covered, and the expected future payment percentage based on your current wage.

In many cases, you'll have to wait for the reimbursements to begin. There is a negative correlation between the waiting period and your premium, so the longer you can wait before receiving benefits from your Income Protection Insurance Policy, the less you'll have to pay each month.

Most policyholders wait until their sick leave is through before cashing in on their benefits. The nicest aspect about this insurance is that you may use the money for things other than your mortgage and other essentials, such as saving for your kids' college, your retirement, or a nice family vacation.

Income protection insurance: do you really need it?

Unless you have a stash of gold hidden away in your cellar, the answer is "yes."

Aside from this deceptive Plautus allusion, you should check with your employer to see how many months of paid sick leave you are entitled to. You can forego income protection insurance if your stay will last more than two years, and you anticipate being able to maintain your current standard of living.

But if you claim to have sufficient funds to see you through this extended period, you must be hiding under a rock. Your savings will be depleted more quickly than you anticipated.

Most people also have the false perception that only a terminal illness will force them to stop working. A study, however, contradicts this thinking. When asked why they had filed a claim, 29% of respondents mentioned mental health problems. 15% were due to cancer, while 25% were the result of an accident.

The main conclusion is that occurrences like these can derail your long-term financial plans, so you should begin formulating a strategy right away.


Those who are serious about protecting themselves financially, no matter what the future holds, should consult a professional independent financial planner. To ensure the safety of you and your loved ones, we at Expat Insurance will analyse your situation and recommend the most suitable investment strategy. 

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