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?

Consider this, according to the Office of National Statistics the average weekly household expenditure in the UK was £572.60 in the financial year ending 2018. With Statutory Sick Pay at that time £92.05 a week, it is not hard to see that most people will face some financial difficulties if they are unable to work through illness or injury. Not many people are in a position to afford to use savings to help cushion the financial deficit for short or long term illness and injuries. Furthermore, if you do not have sick pay to fall back on what would you do?

It does not matter whether you have people who rely on you such as children or other dependants – if you were ill and you could not pay your bills, then you should consider having income protection insurance.

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.

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