When you suffer a serious illness or injury, the last thing you should worry about is how you’ll pay the bills when you’re off work. This is where income protection can help.
What is income protection?
Income Protection provides a monthly payment if you can’t work because you’re ill or injured, and typically pays out as tax free income until you can start working again, or until you retire, die or the end of the policy term – whichever is sooner.
Do you need Income Protection?
Being unable to work can quickly turn your world upside down. Could you survive on savings or sick pay from work? If not, you may need some other way to keep paying the bills and you might want to consider income protection.
Starting a family
Taking out a mortgage
Starting or ending employment
Planning a funeral
Covering inheritance tax for your dependants
You might like to try our risk calculator. This calculator identifies the percentage chance of you being unable work for two months of more, suffering a critical illness, or death occurring at some point between now and when you plan to retire.
The charity campaign 7 Families aims to raise public awareness of the financial impact of long term illness or disability and this video introduces you to 7 families and their personal situations. You can find out more about 7 Families by visiting their website and facebook page.
What does income protection insurance cover?
It covers most illnesses that leave you unable to work but this depends on the type of policy and its definition of incapacity. No two income protection products are the same and it is important that you get the right one for your needs.
When does it pay?
This could be after your sick pay ends or any other insurance stops covering you. To ensure that the income protection product you choose pays out when you need it, it is essential that you get the right product for your needs.
How much does it cost?
The cost of your cover will depend on many variables including your:
state of health
whether you smoke or not
Is Income Protection Insurance for you?
If you have answered yes, then there are many factors to consider and our independent financial advisers will take you through a step by step process, identifying your exact requirements and only then will they make a recommendation. Once agreed they will then manage your application from start to finish.
You may wish to read our Guide to Protection Planning which explains the different types of income protection insurance as well as life insurance, critical illness and private medical insurance. This guide is meant for your general information only and is not intended to address your particular requirements.
Worried about how you’ll pay the bills if you’re off work due to an illness or injury? When you suffer a serious illness or injury, the last thing you should worry about is how you’ll pay the bills when you’re off work. To discuss your situation or for further information please contact us.