Category - Income Protection
Income protection insurance offers UK residents a unique and secure way of protecting one of their biggest assets – their regular salary. In essence, it is protection against the loss of income. This could happen due to a number of factors – redundancy, sickness – and in these cases, you’ll probably be glad you got it.
Is income protection really necessary?
There are many reasons why you may need income protection insurance – but it is still a good idea to sit down and really assess the situation. While it is always nice to have a plan in place -which can further help provide a feeling of security- you need to still examine whether taking out a policy is really necessary.
For example, maybe…
- …your employer has a sick pay policy. In cases where you’re too ill to work for an extended period of time, your costs will still be covered.
- …you have a spouse/partner/family who are willing and able to support you while you’re unable to work. Naturally, most people don’t like to rely completely on others but this could very well be an option.
- …your savings could also be sufficient to carry you through this time.
What types of policy are there?
Income protection insurance usually offers several types of policy. Often, they can be tailored to your own specific needs. For example…
- Critical illness cover, while not quite the same thing, can perform a similar function. However, it is a very specific type of cover and only applies if you happen to get too ill to work.
- You can also get short term income protection – these policies are designed to pay out for a certain period of time (usually 6-12 months). These policies tend to be a bit cheaper.
- Long term income protection is for longer periods of time – such as when you become so ill that it’s unlikely you’ll work again.