Income Protection

What Is

Income Protection

Income protection insurance: A safety net for your income if illness or injury strikes

Income protection insurance is a type of insurance that pays you a portion of your income if you’re unable to work due to illness or injury.

It can cover you for the entire period you’re unable to work, or until you retire. The percentage of your income that’s paid out may decrease over time, but it can still be a lifesaver.

Income protection insurance is a great way to protect your household income and financial future if you’re unable to work. It can help you cover your living expenses, mortgage payments, and other financial obligations.

Who Needs

Income protection insurance

Income protection insurance is a good idea for anyone who wants to protect their income in case they’re unable to work due to illness or injury. However, it’s especially important for people who:

  • Are self-employed or run small businesses with no sick pay
  • Are the main breadwinner of the household
  • Have a family that relies on their income

If you fall into any of these categories, I encourage you to consider getting income protection insurance. It can give you peace of mind knowing that you’ll be financially protected if you’re unable to work.

If you’re thinking about getting income protection insurance, be sure to talk to a financial advisor. They can help you assess your needs and find the right policy for you.

Do I Really

need income protection insurance?

Here are a few things to consider:
Do you already get income protection insurance through work?

Some employers offer this as a benefit. Check your employment contract, handbook, or personnel department to see if this is the case.

Do you have some other kind of illness insurance combined with another insurance policy or with your mortgage? 

Some policies cover you for serious illness.

Do you have enough savings to cover a long period of ill-health? 

Keep in mind that you may face another emergency, which could use up your savings and leave you with no cover for illness.

If you answered no to all of these questions, then income protection insurance may be a good idea for you. It can provide you with a financial safety net in case you’re unable to work due to illness or injury.

How To Figure Out

how much income protection insurance you need:

To figure out how much income protection insurance you need, imagine you’re unable to work. What are your monthly expenses?

Include everything from your mortgage and bills to your groceries and transportation costs. Once you have a total, add a little extra to cover unexpected expenses. That’s the amount of income you need to replace with your income protection insurance policy.

When choosing an income protection insurance policy, be sure to compare different policies and find one that fits your budget and needs. You should also consider the following factors:

  • The length of the deferred period. This is the amount of time you have to wait before your benefits start paying out.
  • The percentage of your income that’s covered. Most policies cover between 50% and 70% of your income.
  • The length of the benefit period. This is the amount of time you’ll receive benefits for. Most policies cover you until you retire, but some policies have a shorter benefit period.

It’s important to choose a policy that meets your individual needs. If you’re not sure which policy is right for you, talk to a financial advisor.

What factors affect

the cost of income protection insurance?

  • Age: The older you are, the more likely you are to get sick, so you’ll pay more for income protection insurance.
  • Health: If you’re in good health, you’re less likely to get sick, so you’ll pay less for income protection insurance.
  • Occupation: If you have a risky job, you’re more likely to get injured, so you’ll pay more for income protection insurance.
  • Hobbies and lifestyle: If you participate in dangerous hobbies or smoke or drink heavily, you’re more likely to get sick or injured, so you’ll pay more for income protection insurance.
  • Waiting period: The longer you’re willing to wait before you start receiving benefits, the lower your premiums will be.
  • Occupation restrictions: If you’re willing to consider other types of work if you get sick or injured, you’ll pay less for income protection insurance.

    • Contact.

    LET’S TALK.

    To discuss how we can help you please contact us using the details below for an initial chat or to arrange an appointment with one of our Advisors in Cornwall.

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    We will only use your personal information in accordance with the Data Protection Act 1998.

    We value your privacy. Any personal information you provide to us through this website will be treated as confidential and will only be used to provide you with the services and products you have requested. We will not share your information with any third parties without your consent.
    We will only use your personal information in accordance with the Data Protection Act 1998.

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