Are your bills paid in the event of redundancy, illness, or injury?
If you ask most people, one of their biggest fears would be losing their income. How would they pay the mortgage or support their family? But this isn’t a fear you have to live with, like a sword hanging over your head.
Read on for our guide to income protection insurance, what it is, and if you need it.
What Is Income Protection Insurance?
As we’ve said, not being able to pay the bills is a big fear for most people. Those bills still need paying if you’re made redundant, get sick, or have an accident.
This fear is only more present given the current uncertain times we’re facing. So, you’re wondering how to protect your income? Simple, get income protection insurance.
Income protection will pay out a tax-free, regular replacement for your income. If you become ill or get into an accident, your mortgage and living expenses won’t be a source of worry.
How Does It Work?
An income protection insurance policy works by paying an income after a set amount of time. You can pick a waiting time of 1-12 months.
The longer you agree to wait, the cheaper your policy will be. It will then payout until either of the following:
- you go back to work
- retire
- the policy ends
- you die
Vist Asteya.world to find out more and get a quote today.
How Much Will It Cost?
The premium has a few factors that will determine the cost. These include:
- health
- age
- coverage amount
- waiting period
- if you’re a smoker
- length of policy
It’s important to note that your waiting period is the time you need to be out of work to claim. But this won’t include unemployment coverage.
Do I Need It?
When you have children, life insurance often is the first type of insurance that comes to mind. And for mortgages, MPPI (mortgage payment protection insurance) is often the first choice. But, in reality, income insurance might work better.
It’s more likely one or both parents won’t be able to work during a long-term illness than because of death. MPPIs offer limited cover, and the policies aren’t easy to claim due to the number of exclusions.
When Should I Take Out Income Protection?
When you think “how can I protect my income” and take out a policy, check your existing cover. Your job may offer life assurance as well as sickness benefits.
The cover you take out should cover the shortfall. But, if you’re not working, your outgoings might be lower so keep this in mind. If you are thinking of taking out income protection, the sooner the better.
The younger you are, and the healthier you are the lower your premiums will be. It’s also a good idea to take out your policy before anything happens. You’ll have the cover in place if you need it.
Income Protection Insurance Made Simple
So, there you have it! Now you know what income protection insurance is you’ll know if it’s right for you.
In times of sickness or injury, it can be a lifeline for keeping a roof over your head. When life kicks you down, the bills don’t stop, but income protection can help take the pressure off. So you can focus on getting better and back to work.
If you found this article useful, check out our other blog posts today!
