This is a question that most people don’t ask themselves until it’s too late – they’ve been diagnosed with a traumatic illness or have had a serious accident that means they’re off work for an extended period.
The obvious answer is if you can’t work you lose your income. The bills start to mount up, and so does the stress – instead of focusing on getting better, you’re worrying about how to pay the mortgage repayments, or pay the school fees.
But there is an alternative.
Income Protection Insurance allows you to protect your income from the risk of illness or injury. After being off work for a specified waiting period, you can make a claim and the insurance company will pay a monthly benefit equivalent to 75% of your income – in many cases, until you’re able to go back to work.
There are a number of different income insurance policies available from a variety of insurance companies, and different policies suit different people depending on their occupation and employment status. The amount of cover you need will depend on your financial obligations and there are many optional extras. Talking to an insurance adviser with access to a variety of products in the market, such as Suggars & Associates, will help you understand your needs and find the best policy available to suit your circumstances.
Like any personal insurance, the best time to take out income protection is while you’re fit and healthy to avoid paying loadings that may apply if you’ve already been diagnosed with a medical condition. Once you have your income protection in place, it remains in force for as long as you continue to pay your premiums – so no matter what happens to your health in the future, you’re protected from losing your income.
The moral of the story? Don’t wait until it’s too late! Protect your income and your lifestyle, and that of your loved ones, by making sure you have adequate income protection insurance. Contact Suggars & Associates to make an appointment and get covered.
The advice in this article is of a general nature only and does not take your personal circumstances into account. You should seek financial advice before making any investment or financial decisions.