If you’re left unable to work due to illness or injury, Income Protection Insurance could turn out to be the lifeline that you’re in need of.
We all need a plan in place for a rainy day. Unfortunately, most of us are so swept up in the tumult of our day-to-day lives that we don’t quite get around to working out what our safety net looks like. Here at The Mortgage Brokerage, we help a huge number of individuals find the right insurance policy that works for them, enabling them to rest assured that they’ll still be able to support themselves in the event that they are unable to work. For many, the best option is Income Protection insurance. But what exactly is Income Protection? And why should you consider taking out an Income Protection policy?
What is Income Protection insurance?
We all live in the hopes that we will manage to escape unscathed from the possibility of being diagnosed with a serious illness, or perhaps being left injured or disabled following an unfortunate accident.
However, when the worst comes to worst, we need to be prepared to support ourselves and our loved ones, even if we are left unable to work. In the event of illness or injury, do you know what would happen to you and your loved ones? Would you be in a position to cover all of your necessary outgoings, such as rent, mortgages and utilities?
Unfortunately, many of us do not have such a plan in place. Cue Income Protection insurance.
Income Protection is a policy that offers a safety net in the event that you are unable to work due to a serious illness or injury that leaves you incapacitated. This type of insurance will pay out a percentage of your annual income, should illness or injury result in a loss of earnings.
How does it work?
Income Protection insurance is designed to pay out a percentage of your income, typically between 50% to 70%, following on from a specified ‘waiting period’ after the event of illness or injury. This waiting period can be between one to twelve months, depending on the type of policy you take out.
After the waiting period is over, you’ll receive your benefit on a monthly basis. How long these payments continue depends on whether you take out a short-term (covering you for 1 or 2 years) or a long-term policy (covering you for as long as required).
Different policies will inevitably function in different ways. Here at The Mortgage Brokerage, we can help to create a clear picture of your options and advise you on what sort of policy is best suited to your circumstances.
Protect your income and your lifestyle
A loss of income would have a tangible impact on any family’s lifestyle, irrevocably changing the way that you and your loved ones are able to exist in the world.
Income Protection is intended to meet the changing needs of those who wish to protect themselves against this possibility, paying out a regular monthly amount that will allow you to maintain your standard of living.
With an Income Protection policy, your lifestyle does not need to change so drastically in the event of illness or injury. You’ll be able to maintain your hobbies and social life, whilst continuing to support the needs of any family you may have.
Stay on top of bills and payments
You may be incapacitated due to ill health or injury, but this doesn’t mean your financial commitments will come to a halt and wait around whilst you recover.
Unfortunately, we all have financial obligations that will tick on no matter whether we are in work or not. In the event of illness or injury, it’s essential that you are able to meet the basics when it comes to your financial commitments, such as utility bills, rent or mortgage repayments.
Security when you need it most
If you find yourself seriously ill or injured, the last thing you need is to be worrying about how you will get by and support yourself.
Illness and injury can place a real strain on a person’s mental health and well-being, and often a large part of this comes from the stress of the financial uncertainty incurred by challenges to your physical health. Luckily, the safety net of Income Protection insurance will enable you to focus your energies on resting and getting well, rather than fretting over financial insecurity.
To find out more about Income Protection insurance, get in touch with us today.
