INCOME PROTECTION

There were approximately 6000000 economically active citizens in Czech Republic in 2019. In the same time there were approximately 5500000 of life insurance contracts. With this information we can say that almost every economically active Czech citizen has some kind of life insurance.

It might be surprising, but functional cover of income has roughly 10% of insured people.

Also there is a lot of expats insured here in some insurance company and not knowing that it is possible that if something happens, than insurance company will not pay them because of some reasons.

It is very important to think about what does it mean "to be insured".

Most of people prefer to cover short term health issues. There is higher probability that they will get some money from insurance company. Unfortunately they frequently forget about disastrous affects of less likely health issues which can cause permanent loose of working ability. You can find monthly malus in your income if disability happens in different grades of disability. 

Red marked is your future monthly missing part of income which can be same for the rest of your life. These money are money which will not be available for things like suitable living, children studies or dignified senescence. By the way, approximately every 15 th czech citizen is on some kind of disability.

Here you can see most frequent causes of disability. People frequently thinks that if they have "accident insurance" then they are safe. Unfortunately mostly so called "accident insurance" covers minority of disabilities. Accidents are causing disability in only 2-5% of cases. All other disabilities are caused by different kinds of serious illnesses.

My goal is to find out what risks can affect you and prepare plan of income cover so it can be really dependable and you can be sure that if something really bad happens with your health, at least you will not have to thing about how to pay monthly expanses. It is also very important to thing about nationality.



Data in this article was taken from these sources:


https://www.cap.cz/statisticke-udaje/vyvoj-pojistneho-trhu
https://www.cssz.cz/web/cz/statisticke-rocenky