BT Insurance's new protective plans to cater for homemakers and high net-worth individuals.
If being a homemaker were to become a career option like all other jobs, companies might have a difficult time filling the position because of the demanding work schedule and long overtime hours you have to put in it. A familiar quote about homemakers mentioned that it is the most underpaid job in the world. Not only is it an underpaid position, but it is also the most unappreciated as well.
This is a very sad but accurate observation. Sure thing that being a homemaker is not a career in the traditional sense of going out to a workplace and being paid for your time and efforts, but it doesn't mean that it should be without benefits. The sad reality, however, is very clear. Just look at the comparison of an entry level employee of a certain company will have the necessary benefits and insurance required by the government; while a typical homemaker doesn't have one. Thus, if you're a homemaker and you get sick, there is no aid to help you or cover the loss incurred when you are unable to work.
Somebody might argue that since you are not earning as a homemaker, compared to a breadwinner who is the main source of income, there is no need for you to get insurance, much less income protection. If you consider the fact that homemakers indeed stay home and do not really contribute financially to the family income, then the argument is valid. On closer inspection, however, the contribution of a homemaker in any aspect of the household is very vital and crucial to the income of the family.
Without someone to manage the household, from budgeting to paying the bills - everything will fall apart. In short, the breadwinner and the homemaker are a team to ensure the financial success of a household. Therefore, it is just fair and logical enough that a homemaker will get income protection insurance to ensure that everything in the household will run smoothly even when she gets sick or injured.
The Other Side of the Fence
In the same light, there is another group of individuals who have great need for income protection if they are the high net-worth individuals. There is no clear definition as to how much a person is financial worth is before it can be categorised as such. One criterion however is based on the worth of someone is liquid assets.
If you are someone who belongs under this group, all the more reason you should need income protection to protect your assets and investments should you get injured or ill. There is much to lose if you are unable to do perform your duties and responsibilities. With income protection, however, you can be rest assured that everything will work out smoothly as you transition from being someone who can work to being dependent.
Your income protection goes beyond the monthly stream of income you will receive as a replacement to your income loss when you get sick or injured. It will also cover any expenses while undergoing rehabilitation.
What has Income Protection Got to Do with Being a Homemaker?
As a homemaker, this scheme is very helpful when you cannot work for an indefinite period of time due to sickness or injury. The amount of the benefit you receive might be different than that of a regular employee, but it is helpful nonetheless as you can use the benefits in many ways.
- You can hire a housekeeper on a regular basis to assist you or do your usual household duties like cleaning the house, doing the laundry, or cooking.
- You can use the payout to pay for any other medical expenses you might need for therapy.
- You can use it to pay for any home enhancements or machines you need because of the illness or injury.
- You can use it to help pay the bills and other day to day expenses helping lessen the stress in the household brought by your illness or injury.
How you spend the money from your income protection benefits is up to you, but it all boils down to easing whatever financial strain your injury or illness might bring.
The BT Solution
Income protection is an insurance product which pays you a benefit on a monthly basis which can reach up to a maximum of 70% of your gross monthly income in case you are unable to perform your duties because of an illness or injury. You will receive the benefit after the designated waiting period and the payment can last until you are able to perform your duties again.
When it comes to insurance, BT Financial Group sees the need for income protection for these two groups. This can be seen through their new income protection offers called BT Reserve and Home Duties Income Protection Option which were launched in March 2012. The BT Reserve is aimed at high net-worth individuals which gives income protection cover, while the Home Duties Income Protection is designed for homemakers. A closer look at how these two enhancements can benefit those who fall under these categories are listed below.
- BT Reserve
- Income protection cover of up to a maximum of $60,000 per month.
- Benefit period options are extended up to 70 if you are a white collar worker.
- Business Expense insurance cover for Class C blue collar workers.
- Home Duties Income Protection Option
- A monthly benefit of up to $5,000 for up to 2 years
- Waived waiting period if you suffer from the same illness or injury within a certain period
- A general cover income protection which extends the cover until 80
- A monthly benefit up to 6 months to cover loss incurred by a specific crisis
- Death cover
Nowadays, insurance is becoming more and more accessible to anyone giving you the peace of mind that whatever may happen, you can and will have cover for your income and assets. It also gives you confidence knowing you will have financial back-up if you cannot work because of an illness or injury.