You may not have heard of income protection policy, but it is one of of useful types of insurance on the market. Income protection policy pay you a monthly income if you are unable to work because of cases accident or sickness.
Advantages of an Income Protection Policy
Useful if you are self-employed
People who are self-employed do not benefit from sick pay like the rest of us, and if they cannot go to work, it can put their business on the line. Income protection policy pay you a monthly income if you are unable to work because of an injury or an illness, giving you financial security to recover fully.
You do not have to rely on benefits
If accident or sickness stops you from being able to earn an income, you will have to rely on savings, your partner’s wage or government Employment and Support Allowance (ESA). ESA can be a lifesaver for many people, but it may not pay enough to maintain your current lifestyle. Income protection can cover around 50-65% of your monthly wage, offering much more support.
You can get coverage until retirement age
Income protection plans such as Income Protection by Life’s Great have the potential to pay out until retirement age if needed. When you take out a policy, you can choose your ‘benefit period’, which is the length of time your insurer will pay you for if you cannot work. Long-term policies will cover you until you can bet back to work or until age 65, whichever is soonest.
You can cover redundancy
Some income protection policies offer cover for redundancy as well as accident and sickness. While redundancy cover will only pay out for a maximum of 12 months; this can be enough time for you to get back into work. Unemployment coverage often includes free ‘back to work’ schemes which can help you return to a job.
Education of Children
If your youngsters are reliant on you, you won’t have the capacity to instruct them if you can’t work and if you have not taken income protection insurance. It is your ethical obligation to care for all individuals from your family, and being set up for the most exceedingly bad is an insightful thing to do.
The Probability of Injuries or Sickness
Statistics prove that the probability of not having the capacity to work because of an injury or a physical or mental sickness is high. With a specific end goal to guarantee that you and your family can make due amid the period that you can’t work, it is fundamental to take a proper income insurance policy.