This is a sponsored post.
Have you ever worried about how you would pay the bills and provide for yourself and your loved ones should you become sick or get injured and are unable to work? Could you manage financially? In these uncertain and worrying times, how can you protect yourself if you become ill and need time away from your job?
Fortunately, there is such a thing as income protection insurance, otherwise known as sickness or disability insurance.
Why do I need income protection insurance?
Illness or injury are not great prospects to think about or plan for. Most healthy people assume they will never need income protection and will remain well indefinitely. Others hope they would be able to claim enough benefits to get by. Many of us will get sick pay from our employers, but not everyone. Even if your employer continues to pay you when you are off sick, the amount and duration varies.
And what if you are self-employed and suddenly can’t work due to illness or injury? In this case, income protection could prove invaluable.
Not many of us could continue to cover all of our outgoings in the event or long term sickness, even if we were organised enough to have an emergency fund. Income protection insurance can provide you with peace of mind should the worst happen.
How does it work?
An income protection policy will pay you a tax free monthly amount, usually up to 60% of your usual gross monthly income. This continues until you are well enough to return to work, you retire or die, or the policy finishes.
Unlike critical illness cover, which pays out a one-off sum for certain serious illnesses, income protection insurance will provide a regular income for as long as you need it.
What else do I need to know?
There is usually a waiting period before the insurance kicks in. You can decide on this in conjunction with your provider and the length of the waiting period will effect the cost of your premiums.
You should take into account any savings you are prepared to spend, how much sick pay your employer will give you and for how long, whether family could support you for a period, etc.
Income protection insurance won’t cover your entire income, but is usually set at 60-70%.
How much will income protection cost?
The cost of your premiums for income protection insurance will depend on a number of factors.
- Your age
- Your current health
- Whether you are a smoker
- The type of job you do
- The percentage of your income you would like covered
- The waiting period before you can claim
- The range of illnesses or injuries covered by the policy
How can I find out more?
Have a look at the Life Search website to find out more about income protection insurance and whether it is right for you.
Then, if you want to discuss it with someone and plan the level of cover you need, you can speak to an adviser on 0800 316 7253.
None of us want to plan for unfortunate events, but if you want to protect yourself in these uncertain times, income protection insurance could provide the reassurance you need.