What is income protection?
Income protection, commonly known as IP can provide monthly tax-free payments that replace part of your income. These payments help ease any financial hardship if you're not able to work.
The cover usually pays out until you are able to start working again or until the end of the benefit or policy term. You can claim multiple times during the term of your policy.
You can also take out budget income protection which usually costs less but the payment period is limited for each claim.
Why should you take out income protection?
In the UK nearly a million people find themselves unable to work because of serious illness or injury every year (ABI 2015). If you become unable to work, would you cope by surviving on your savings, sick pay or on state support? If the answer is no, it is likely you will require an alternative way to continue to pay your essential bills and it may be worthwhile considering income protection.
How much does income protection insurance cost?
The cost of a policy will vary depending on various factors such as:
If you would like advice on taking out or reviewing your income protection policy then get in touch with our advisors today!
To find out more about mortgages, personal insurance, business insurance and protection or to discuss the options available for your circumstances, contact our team of advisors