Income Protection Back
Income Protection is perhaps one of the least common of insurance policies out there; however, it is arguably one of the most important. If you were unable to work due to an accident or sickness are you confident that your financial commitments such as a mortgage could still be paid?
Would you struggle to make ends meet on statutory sick pay? Or perhaps you are lucky enough to receive full pay from your employer but may be concerned regarding what will happen once you are no longer eligible to receive it? Income protection can alleviate these concerns and help you maintain your lifestyle if you are unable to work.
Types of Income Protection insurance
As you would expect, Income Protection comes in many different shapes and sizes. Short term Income Protection covers you for 12 or 24 months which may suit you if you have a restricted budget, you can also have long term cover that will pay the benefit until you either return to work or have reached retirement. Please note however that if you wish to cover for redundancy this can only be done on a short term policy.
You also have the option to select what is known as your ‘deferral period’ depending on your personal circumstances. For example, if you do not receive any sickness pay from work you may want a short deferral period to start paying the benefit immediately, or you can choose to have a longer deferral period if you do benefit from sickness pay and would like cover to tie in when this stops.
What type of Cover do you require?
The flexibility of Income Protection Insurance is extensive providing you with potentially any level of cover to suit your requirements. Whether you just want to make sure the mortgage is paid or you want to have the maximum benefit possible, the policy can be tailored to suit your circumstances. However, please be aware that the maximum cover available is usually 65% of your earnings.
To arrange a complimentary consultation, please contact our Independent Financial Advisers on 0800 038 9733.