At some stages of life, you may become unable to earn due to some physical illness, at that stage of your life you can get the monetary support from an insurance policy. You people obviously invest for the insurances to get the benefit at the time of your need. Today we are here to talk about such an insurance that is specially meant for the people who are working with an established company or have a fixed income from a company. This type of insurance is known as Executive Income Protection.
There are few criteria you need to fulfil to avail the benefit of this insurance. The benefit of this insurance policy can only be availed by the executive or the director of a company. The person should be ill enough so that he/she could not work for a very long term. For such time the company do not pay you any salary if you have availed all your sick leave. For such time this insurance will provide you with an adequate amount of money on a monthly basis so that you can make your necessary expenses. This insurance covers up to 75-80% of your salary almost. They only provide you with the amount that is non-taxable.
The advisors say that if you want to take the full benefit from this insurance policy you should apply for the insurance benefit after the days of your sick leave gets over. Because if you are running with the benefit of this insurance then you will not be able to enjoy the paid sick leaves. This is why the advisors ask you to set the deferred period or the time to start getting the benefit after you get ill when your sick leaves are over. This is how you can enjoy the benefit of your sick leaves and the benefit of the insurance as well. There are other benefits of making the deferred period long, the more time you take to avail the benefit of the insurance the less amount of money you need to pay for the insurance policy.
The Executive Income Protection will only provide you with the money till the date you have your job. Because they will get the money from your salary that you get from your company. If you want to avail the benefit of the insurance as many time as possible then you need to set the expiry date of the insurance on the date of your retirement. Meanwhile, if you decide to quit the company your insurance will automatically get expired.