What is Income Protection Insurance?

Secure your salary and assure your future with Digit Group Total Protect Policy- the smart choice for all salary earners. An income protection plan/ a salary protection plan, these terms are synonymous. With the Digit Group Total Protect Policy, learners can have ease knowing that their salary is protected against unexpected circumstances like job loss/ loss of employment/ layoffs.

Why do we need Income/Salary Protection Plan?

An income protection plan works as a financial security by ensuring steady income in case of loss of employment due to circumstances which are not in the control of an individual like layoffs, organization restructuring, etc. The salary protection insurance allows one to cover essential expenses and maintain financial stability during challenging times. Some of the reasons why you need salary insurance are:

Income Protection Plans secure your loved ones in your absence

Income insurance protection provides financial aid to your loved ones in case you lose your job. You or your family members need not find other ways to meet the ends.

Salary Protection Insurance helps clear your debts

You would have taken some loans or EMIs or would have other liabilities to be paid off. The repayment of this debt can become a financial burden for you and your family in case of job loss. To avoid such scenarios having salary protection insurance is a must.

Income Protection Insurance helps you fight inflation

With the constant price rising during inflation, it becomes crucial to save money. An income protection insurance plan provides you with financial security for a maximum of 3 months that can help you deal with the negative effects of inflation especially when you are unemployed.

Salary Protection Plans help maintain the lifestyle and quality of life

If you are the sole or primary earner in the family, an income protection insurance plan will keep you financially secure and take care of your entire lifestyle. This plan helps you to continue with the same standard of living as before, in case of job loss.

How does income protection insurance work?

Income protection insurance covers:

• The maximum payable amount is restricted to 70% of your take-home salary after tax up to a maximum of Rs 40,000
• Pays out the payment for a maximum of 3 months so you have enough time to secure another job during this period assisted by the EduBridge team.
• Your monthly expenses and EMIs are covered, during the loss of employment period.
• Learner is eligible only for 1 claim per annum. i.e. 3 EMIs at the most.

When do you need income protection insurance?

Income insurance protection is a valuable financial tool that becomes necessary in various situations marked by uncertainty and unforeseen circumstances. Here are some specific instances where having income insurance protection is particularly important:

• Layoff or Unemployment: In an ever-changing job market, layoffs can occur due to various factors such as economic downturns, organizational restructuring or company closures. Salary protection insurance can provide a source of income during periods of unemployment, helping you cover your living expenses and maintain financial stability until you secure a new job.
• Organization Shutting: Sometimes, unforeseen events can cause an organization to cease operations temporarily or permanently. This can happen due to financial difficulties, legal issues or other external factors beyond your control. If you find yourself out of work because the organization you were employed with is no longer functioning, income insurance protection can offer financial support until you find alternative employment.
• Economic Volatility: The economy can experience periods of instability, which may lead to job uncertainty and financial hardships. Salary protection insurance can be a valuable asset during such times, as it offers protection against unforeseen events that may impact your employment or income. It provides you with a measure of financial security and peace of mind in the face of economic turbulence.

How much Income Protection do I need?

Determining the ideal amount of income protection insurance is a personalized decision based on individual circumstances. To assess your needs, consider your monthly essential expenses such as housing, utilities, groceries and transportation. Evaluate your non-essential expenses and determine which ones you would like to maintain during a period of income loss. Take into account any existing benefits or savings that could contribute to covering your expenses. Aim for coverage that replaces a significant portion of your pre-tax income, typically around 60-80%. However, remember that everyone’s situation is unique, so it’s essential to carefully evaluate your financial obligations. By considering several such factors, you can determine an appropriate level of income protection that provides you with peace of mind and financial security.

How EduBridge helps you Secure your Salary?

EduBridge has partnered with Digit General Insurance to offer a lifeline to working professionals through the Salary protection insurance- Digit Group Total Protection Policy. It is provided free along with some of the selected courses from EduBridge, providing learners with financial security in case of any unforeseen unemployment.

Learners covered by this policy can receive benefits of up to Rs. 1.2 lakhs in case of an event of job loss. This policy provides learners with peace of mind and support to working professionals during challenging times job loss or layoffs.

*This policy is exclusively available to EduBridge learners and not extended to the employees or partners of EduBridge or its subsidiaries.