Your ability to earn an income is arguably your most valuable asset, especially when living abroad. It funds your lifestyle, supports your family, and allows you to save for the future. But what happens if illness or injury prevents you from working for an extended period? This is where income protection insurance becomes critical for Expats in Indonesia.

Unlike health insurance (which covers medical bills) or life insurance (which pays out upon death), income protection insurance provides a regular replacement income if you’re unable to work due to sickness or accidental injury. This ensures you can continue paying rent or mortgage, covering daily living costs, and meeting other financial obligations while you recover.

For Expats in Indonesia, relying on local social security systems for disability benefits is often not an option. Company sick pay policies may be limited, potentially leaving you financially vulnerable after just a few weeks or months off work. An income protection policy bridges this gap, providing financial stability during a challenging time.

When considering income protection, look at the benefit amount (usually a percentage of your salary), the waiting period (how long you must be off work before payments start), and the benefit period (how long the payments can last). Having this safety net allows Expats in Indonesia to focus on recovery without the added stress of financial hardship.

Protecting your income stream is fundamental to maintaining your life abroad. Don’t underestimate the risk of being unable to work – ensure you have a plan B.