Income Protection Insurance
Left with no income, how long would your savings last?
Income Protection Insurance
As household finances are stretched by high living costs, saving for a rainy day isn’t an option for everyone. Without a contingency fund, you can worry there’s nothing to fall back on if an accident or illness prevents you from working. Or you can take out Income Protection Insurance – the ideal antidote to those sleepless nights.
What is Income Protection Insurance?
Designed to minimise the impact that an injury or ill health has on a family, Income Protection Insurance ensures that you’ll continue to receive a regular income while you’re unable to work. Anyone can have this type of policy as a backup – and it’s particularly useful if you’re self-employed and don’t receive statutory sick pay.
“As an Independent Financial Adviser, we have access to the entire insurance market – so we can find you the best possible cover at the most competitive price. Because we’re independent, our approach is client focused rather than product led. We’re not here to sell insurance policies. We’re here to give expert advice that’s tailored to your requirements. And when we do this, the right policy follows naturally.”
– Simon Claxton, financial services specialist at Macbeth
How Income Protection Insurance works
When you take out Income Protection Insurance, you pay a monthly or annual premium in return for regular payments to replace a proportion of your taxable income (including salary or dividends) if you’re forced to take time off work after an accident or to recover from a serious illness.
Being forced to take time off work can spell financial disaster for many people. The payments you receive from an Income Protection policy will help tide you over until you’re earning again.
Your policy can be set up to provide an income until you’re able to return to work or you reach retirement
You can keep costs down by increasing the length of time before your policy payments start or by limiting the payment period to a fixed number of years
Your cover can include rehabilitation services such as physiotherapy and psychological support
Why you should consider Income Protection Insurance
No one can predict what’s around the corner. With Income Protection Insurance you don’t have to worry how your mortgage and other household bills will be paid if you’re unable to work because you’re ill or injured.
Legal & General’s latest Deadline to Breadline research revealed that the average UK employee only has enough savings to last them 32 days on their current lifestyle if their income stopped, highlighting the importance of Income Protection Insurance for many households.
For professionals such as doctors and surgeons working at least 32 hours a week, insurers will guarantee to pay a minimum monthly income, no matter how much the policyholder’s income has dropped or when they make a claim.
We can also set up Income Protection Insurance for homemakers – so families can afford to pay for help with tasks such as childcare, cooking and cleaning.