Income from a job, business, or any other source can provide you with financial protection and stability from various liabilities. However, life is unpredictable and it is always better to be prepared for any unforeseen circumstances. This is why it is essential for you to protect your income and safeguard your loved ones against all unfavourable circumstances.

Here are some important things to know about protecting your income with an income protection insurance plan.

What are income protection insurance plans?

Income protection insurance plans ensure that your income is protected so that your family remains secured at all times. These plans financially protect your loved ones in the case of an unfortunate event. It offers them the opportunity to live a comfortable life that is stress-free and financially stable.

Why do you need income protection insurance plans?

Income protection insurance plans are important for multiple reasons. Here are some of their uses:

• Inflation protection: Inflation increases the price of goods and services which means that you can buy lesser items with the same amount of money in the future. With prices constantly rising, it is vital to have a plan that protects your money while retaining its value in the coming years. An income protection insurance plan provides your loved ones with the financial security that can help them deal with the negative effects of inflation
• Ensures constant quality of life: If you (the insured person) are the primary earner in the family, an income protection insurance plan can take care of your family’s lifestyle needs. It can help them continue with the same standard of living as before, in the case of an untimely circumstance. With these plans, your income continues as it was and your dependants get to live comfortably
• Debt coverage: You may have taken some loans, such as a home loan, car loan, personal loan, etc. In addition to this, you could also have credit card dues or other liabilities. The repayment of this debt, in your absence, can become a financial burden for your family. However, an income protection insurance plan offers immediate payouts to settle any outstanding debts that you have accumulated in your life. This gives your loved ones a chance to live their life without worry

ICICI Pru iProtect Smart Plan: The ideal income protection insurance plan

The ICICI Pru iProtect Smart Plan¹ provides many benefits so that you and your loved ones do not have to make any compromises with your financial goals in uncertain times. This plan offers a life cover² and some great riders which are additional benefits that you can opt for. The accelerated critical illness rider³ covers the cost of treatment of illnesses like heart diseases, cancer, etc. The plan also offers an accidental death benefit⁴ that pays up to ₹ 2 Crore to your family, in case of an unfortunate event due to an accident. In the case of permanent and total disability, the company will pay all future premiums on your behalf, and your cover continues without any change. Moreover, the plan offers tax⁵ benefits of up to ₹ 54,600/- under Sections 80C and 80D. The sum assured also qualifies for tax benefits under Section 10(10D), offering your family financial stability in difficult times.

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