Protecting your necessities



Most people have building and contents insurance which covers them for any loss or damage to their home and what’s in it. Lots will also have life insurance which will pay out to their loved ones when they die. Yet the one type of insurance the majority of people don’t have is the one that protects what pays for their home and lifestyle-Income Protection.

 

What is income protection insurance?

Income protection is an insurance policy that pays out if you are unable to work due to an injury or illness.

 

Types of income protection

Long term income protection, formerly known as permanent health insurance usually pays out until you return to work, retire or die. Short term income protection policies are also available and are cheaper, but neither of these policies will pay out if you are made redundant.

 

Do I need income protection?

If you were unable to work due to an injury or serious illness how would you manage? Do you have savings? does your employer pay long term sick pay? If the answer is no, or if you are self employed you may want to consider income protection insurance.

 

How much does it cost?

The cost will vary and be based on a number of factors including:

-Age

-Whether you smoke or have previously smoked

-Health (your current health, your weight, your family medical history)

-Job

-The percentage of income you’d like to cover

 

Picking the right cover means matching your needs and personal circumstances to the best policy available. A financial adviser can help you find the income protection policy that’s right for