What is income protection Insurance?
Income protection insurance is designed to help you if you suffer an injury or are too ill to work by replacing your monthly income until you retire or are able to return to work. Income protection is a secure way of protecting your income. Some income protection insurance also provides cover for your pastimes, such as horse riding, motorsports or mountain biking.
How does income protection work?
Income protection policies cover most illnesses and accidents that may leave you unable to work. For example, it may cover you if you are unable to work due to a stress-related illness, mental health or physical health condition. Income protection policies also provide cover for your pastimes and hobbies, even if those are considered hazardous or dangerous. Income protection replaces a percentage of your income, it pays out until you start working again or until you retire and you are able to claim as many times as you need to.
How do I pay for my Income Protection Insurance?
You will usually pay a monthly amount for your income protection insurance which is called a premium. You must continue to pay your premiums as if you do not your policy will expire and you will not be covered. It is good to review your policies when there are any significant changes such as getting married or having a family.
Do I need income protection?
Whether or not you need income protection depends on your circumstances and financial situation. Income protection is designed to provide a replacement income if you cannot work due to illness or injury.
Here are some factors to consider when deciding if income protection is suitable for you:
Employment status: If you are self-, income protection may be an excellent option to provide a safety net if you cannot work due to illness or injury. Especially if you have a mortgage or a family to support,
Age and health: As you age, the likelihood of experiencing a long-term illness or injury increases, making income protection more critical. Additionally, suppose you have a pre-existing medical condition. In that case, income protection may be beneficial as it can provide financial support even if you cannot work due to that condition.
Employer benefits: If your employer offers generous sick pay, you may not need income protection.
It's essential to consider your financial situation carefully and speak with one of our advisors to determine if income protection is right for you.
Which income protection policy is right for me?
There are many options available according to your needs. Our expert advisors will take the time to understand what you need and help you decide the best option to suit your needs. Get in touch to find out more.