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By: Robert Taylor

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Monday, 19-Jul-2010 15:12 Email | Share | | Bookmark
“Mental Disability clause” in Income Protection Plans

People are now aware of how important it is to have an income protection plan or income protection insurance. More and more people are purchasing such plans in order to have a secure source of income in case they happen to be disabled due to an accident or any illness. While these plans do not provide people with the same amount of money which they were earning, these schemes give out 50% to 70% of the income which a person used to have while he was earning.

While everyone is aware is aware of the fact that income protection gives them a fixed amount of money every month in case they are physically disabled not many people know that there has to be a special mention of “mental disability clause” to cover for such situations. If it so happens that your protection plan covers only physical disability, however you have been affected by a mental disability then your protection plan may actually be worthless.

Since all of us would need to be completely covered by the income protection plan that we choose to purchase, we need to be very careful with the type of plan we purchase. While physical and mental disability needs to be covered, it is also important that we include our mortgages and credit cards if we own such assets. This is how we will be able to have a comprehensive cover with the purchase of the income protection plan; otherwise it might be a useless preposition to even go in for such a plan.


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