Being unable to pay your mortgage or meet your financial commitments in the event of redundancy, accident or illness is a significant fear for many people, particularly in the current uncertain economic climate. But there are steps you can take to deal with this risk, and one of the most effective is to take out Income Protection Insurance.
We can give you a competitive quote on this important insurance product and most people with existing policies will be able to save money by switching to us. But what is Income Protection Insurance, and is it right for you?
What is Income Protection Insurance?
Income Protection Insurance is a policy that pays you a regular tax-free income to replace your lost earnings in the event of you being unable to work through ill-health, accident or redundancy. It can help you to meet your mortgage costs, medical bills or other daily living costs. Some policies will also pay you an income for the remainder of your policy term if you are unable to return to work following your accident or illness.
There are two main kinds of income protection. Permanent Health Insurance (PHI) ensures that, in the event of illness, a portion of your income is protected up to the age of retirement. Accident, Sickness and Unemployment Insurance (ASU) helps you to meet your essential domestic expenses in the event that you experience illness, an accident or redundancy.
These policies can pay up to 60 percent of your monthly earnings throughout the term of the policy, though once the policy term has ended, the cover stops.
Why do I need Income protection?
None of us knows what is around the corner, and if you are unfortunate enough to experience illness, an accident or redundancy, Income Protection Insurance will ensure that you don’t get into financial difficulties by covering your essential bills, such as your mortgage. If you wish to find out more about Income Protection Insurance and whether it could be right for you, get in touch with us today.
You can take out one of our Income Protection Insurance policies at any time, but many people consider these policies at important moments in their lives, such as beginning a new job, getting married or when they’re thinking about starting a family.