What protection do you have in place for your income? Do you have enough savings in place to keep you going if you were unable to work?
Medical costs can be extortionate when you need specialist care that isn’t on the NHS. But even when you can get the care you need for a low cost, how long can you go without an income? 6 months? Less? Protecting your income is essential.
Income Protection Insurance is a policy that will help you stay financially stable should anything happen to prevent you from bringing in an income. Whether it’s due to injury, illness or even redundancy, Income Protection Insurance will make sure that you have a safety net in place to help you get back on your feet.
Generally Income Protection pay-outs are tax free and pay you between 50% and 70% of your earnings while you are unable to work. You can have the cover last for a short period of time, or long term: this will mean you will be completely covered up until retirement or death.
You need Income Protection Insurance if you want security and peace in your life. No one can be certain that they’ll be fit and healthy for the entirety of their lifetime. No one can really know what’s around the corner and while we can take some precautions to make sure we stay away from illnesses, these things tend to sneak up when you least expect them.
Being caught by surprise when these disaster strike is why you need Income Protection. You need a safety net, and this insurance will provide it for you. The money provided by Income Protection Insurance will not only help you to stay up to date with the bills, it can help you to combat any medical bills and allow you to afford treatments, meaning you’ll be back up and in work much quicker.
The constant worries that you’ll be left to fight on your own when you’re knocked off your feet can be a constant burden on your mind. It’s an unnecessary burden.
But if you do decide that you can live with this burden and risk your financial stability then you should know exactly what you’re up against.
1 in 3 people will go through cancer at some point in their life, and that’s just one disease. What about other medical conditions that could render you unable to work or bring in income? And what about the accidents? Even if you don’t participate in any dangerous sports or hobbies, can you be completely certain that you are in control of what will happen in the environment around you? From small fractures to serious injuries such as paralysis, what will happen if you can’t afford the best treatments?
And it’s not just about you. Your family and close loved ones rely on your support to keep them afloat. Will your partner be able to struggle on paying the bills without your contribution? How will your family make do? Who can you rely on to help you out? What if this happens long term, and you’re left out of work for a considerable amount of time?
All the “what if’s” and bad dreams could come true if you don’t have protection in place.
There are several variations that can be made on a policy. From the length of term and amount of cover provided, to picking an insurer that will cover you for the disasters you apprehend the most.
Short-Term/Long-Term Income Protection Insurance
Short-term policies are designed to pay you an income for a short period of time, for example the first 6 months which you are unable to work will be covered by the policy, but after that period of time has ended the policy also ends, and you are without cover.
Long-term policies will carry on paying a part of your income until you are back to work or you retire. This policy will continue to support you no matter how long you are out of work, and the pay-outs are tax free.
ASU (Accident, Sickness, Unemployment)
This cover will do the same for you as any Income Protection policy, but it will also pay out an income to you if you are unemployed. Of course, a policy without the extra unemployment cover will aid you greatly in staying financially secure, and you may think that you can survive off the governments Jobseeker’s Allowance, but that can be as little as £72.40 a week. Will that be enough to support you and your family if you are out of work for a long while? ASU cover will be there for you to give you the amount of support that you need, and doesn’t leave you financially unstable.
Family Income Benefit
While you are thinking about how you would manage if you were out of work for a prolonged period of time, have you considered what would happen if you weren’t there to help your family cope at all? Would things run smoothly without your income and support? Family Income Benefit is designed to give your family a steady income if you were to die, saving them from an unstable financial state. It’s worth looking into.
Mortgage Payment Protection Insurance
This policy is very similar to ASU cover, except it is specifically created to cover your mortgage payments should you be unable to work. This could be because of an accident, sickness or unemployment: either way, your mortgage will be covered, meaning you’ll always have a home to recover in, and shelter to comfort under. Our expert advisers will be able to cover all of the insurance types mentioned, we have experts in house who can guide you through each policy so that you will know which policy is best for your circumstances, and exactly what is entailed in the policy.
Changes happen all the time in our lives. Job changes, relocating, medical conditions, additions to the family, divorce, marriage etc. it’s sometimes hard to predict what will happen next. It is essential that you keep your policy up to date with your present circumstances. You may find that as your family expands and you exceed at your job, you rely on your income even more. You may want to reduce your policy, or increase the time it is in effect for.
It can also be worth re-evaluating how much you are paying for your current policy: over time the insurance industry changes and more insurers come into play. You could be getting more cover for the money you’re paying. Reviewing or changing your policy is something that Active Brokers are proud to offer. Don’t hesitate to contact us if you feel that your policy isn’t quite suited to you anymore. We’re happy to help.
The exact cost of your personalised Income Protection Insurance policy will depend on various things: predominantly how much cover you want, the length of the policy you want and your current budget. You can talk this through with an adviser who will be able to tell you exactly what should be suitable for your circumstances.
Other factors that are taken into consideration include any medical conditions that you currently suffer from, and any medical history you have. Lifestyle is also taken into consideration. Premiums tend to cost more for people who smoke, and any dangerous hobbies are also important: this includes any potential danger in your current job. The rule tends to go that the more at risk you are of not being in work due to accident, illness or unemployment, the higher the cost of the cover.
The amount of cover that you need depends on your specific circumstances. It may be worth keeping a closer track on what exactly your income pays for, this will give you a better idea of how much cover you will need to keep you afloat should the worst happen. The length of the policy will depend on you. You may want the policy to last up until your retirement, so that you know you’ll be always be covered no matter what happens. You may also want to consider your family and partner. Will they be relying on your income for the rest of your life? Is your partner capable of financing the family on his own? Will your children always be relying on your income or will they be independent soon? If this is the case then a shorter policy may suit you more, this way you’ll only be paying for the cover that is really needed.
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We can make the application process as quick and easy to explain as possible, so anyone can find the best Income Protection policy from the insurers at the top of the current market.
Active Brokers are experts in finding all sorts of insurance policies that are tailored for individual circumstances. We have professionals who specialise in Life Insurance to Business Insurance to Health Insurance: with over 15 years of experience searching the top insurers on the market, you can be sure we will find you the best deal.
We look at your circumstances and your budget to find a policy that doesn’t compromise on the amount of cover for a cheap price. We handle all the forms and application process, meaning you can relax knowing that your Income Protection Insurance will be in safe hands.