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Income protection strategies that don’t include income insurance

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This guide outlines several strategies for income protection that don’t include expensive income insurance.

It is safe to say that people work in order to have enough money to live a comfortable life. However, what you may not have thought about after landing a job is that if something goes wrong, you could easily lose your source of income. Illness, bankruptcy – such things are unpredictable, and yet they can put your family in danger of becoming homeless.

In order to make sure that your financial stability is protected, it is essential that you familiarize yourself with a few income protection strategies that will help you maintain financial stability.

Income protection strategies

Here, you will find a list of helpful suggestions for employees who want to protect their income, such as the income protection of getting life insurance, investing in different things, opening a savings account, and — most of all — knowing your income protection rights.

Get Life Insurance

You might not be aware of this yet, but affordable life insurance can make your life much easier as an income protection strategy. It might feel like it is not worth your money, though. You would not be the only one who thinks that way. In fact, it is estimated that less than fifty percent of Americans have life insurance.

Unfortunately, while it might seem like you are saving money, in reality, you are putting your family and yourself in danger. If you die unexpectedly, your family will lose a reliable source of income.

If you fall ill, your family might end up unable to cover your medical bills. Because of that, getting life insurance is definitely a must. You can browse https://www.anorak.life and websites alike to get more precise information on life insurance offers you may get.

Invest in Different Things

In order to protect your financial stability, it is recommended that you start investing your money for income protection. For example, you could invest in stocks, bonds, and real estate. Ideally, you should invest in a few different things. This way, if one of your investments fails, you will not lose the entirety of your savings.

Stocks

If you want to invest in stocks, it is recommended that you invest in an index fund – it will allow you to earn more money over time. However, there are other types of stocks that you could invest in. For example, you could invest in a bond fund or even in a high-growth stock.

Bonds

Investing in bonds is quite different from investing in stocks. Most importantly, bonds are considered to be safer investments, as the government backs them. If you are interested, you should get in touch with an investment advisor – they will be able to tell you more about bonds and help you pick the best one for your portfolio.

Real Estate

There are several types of real estate that you could invest in. For example, you could invest in real estate directly by purchasing a house and renting it out.

However, there are some other ways to invest in real estate, including house flipping, real estate investment trusts (REITs), online real estate platforms, and more. Make sure you get professional investment advice to choose the most suitable option for you.

Open a Savings Account

It goes without saying that everyone should have a savings account where they can store income protection money for rainy days. It would be great if you opened a savings account in one of the larger banks where you can deposit as much money as possible – the more money you have in your savings account, the better.

There are many types of savings accounts that you can choose from. You can opt for a high-yield savings accountthat will give you a higher interest rate on your money, or you can choose a safety deposit box to store your money.

Of course, the safety deposit box will have a higher monthly fee, but it will provide you with more security and peace of mind knowing that your money is safe.

If you do not want to open a savings account at one of the central banks, plenty of small banks and credit unions offer decent interest rates and excellent security. You can search for these small banks and credit unions online and find one that fits your income protection needs best.

Know Your Income Protection Rights

Did you know that employees are protected by law? If your employer violates the law, you are free to take legal action to protect your income and your financial stability. That being said, you must know what laws protect you and how they work as income protection. Here are a few examples:

  • The federal minimum wage is $7.25 per hour. If you are making less than $7.25 per hour, then your employer is violating federal law. Because of that, you can take your employer to court and win compensation. You can do that if your employer is not paying you for working overtime, too.
  • If your employer forces you to work more than 40 hours per week without paying overtime pay, then they are violating federal law. Moreover, if your employer does not pay you for sick time, vacation time, or any other type of paid leave time, they violate federal law.
  • It is also illegal for employers to discriminate against their employees based on race, sex, age, religion, and disability status. If your employer is discriminating against you, it is a violation of federal law.
  • If your employer fires you for any reason other than gross misconduct, then they must give you a certain amount of notice before letting you go. If they do not give you this notice, then they are breaking the law.
  • If your employer retaliates against you for filing a complaint about discrimination or harassment or some other wrongful action taken by the employer against you as an employee, then they are breaking the law.

In short, make sure that you know your rights as an employee. If anything happens to you as an employee – whether it be discrimination or underpayment – make sure that you report it immediately. You will need evidence of these actions taken against you as an employee in order to successfully sue your employer for income protection  damages, though.

In Conclusion

If you want to protect your income and your financial stability, you can achieve it by implementing the strategies mentioned in this article. You can opt for a life insurance plan, consider investing your money in different things, or opening a savings account, but do not forget about defending your rights as an employee.

Remember, income protection is not only an excellent idea for you as an employee but also for your family.

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