Income Protection Insurance UK

Most of us live from paycheque to paycheque, and we need those regular payments to cover monthly obligations. Even those who have saved up for a rainy day may be up a creek if the paychecks are suspended for longer than a month or two. That's where Income Protection Insurance comes into play. Income Protection Insurance is designed to provide a regular income if you are unable to work through illness or accidental injury leading to a loss of earnings.

Income Protection Insurance /Income protection cover is there to help should you become disabled and unable to perform your daily job. Disability could be due to illness, accident or a chronic medical condition..

Income Protection Insurance comes in many different shapes and sizes, so people can tailor a policy to fit their individual needs. Variables in Income Protection Insurance insurance include how long it takes for the benefits to kick in, how much the benefits are and how long they might last. Your premiums will vary based on these factors, you need good advice so you can purchase Income Protection Insurance insurance that will carry you through difficult times at a price you can afford.

Choosing a UK Policy
It is important to choose an Income Protection Insurance policy that will provide adequate protection for your needs. Most experts recommend a plan that will provide 60% of your annual gross earnings. This amount generally covers the mortgage as well as the basic necessities each month. You also have a choice in when the plan benefits will kick in. The longer you can wait after the 'event' for the benefits to begin, the cheaper your premiums will be. However, you don't want to be left without income for any significant period of time, so make sure you have enough in savings to cover your bills until the plan becomes active. Most policies will offer options of deferring the start of payments for one month, three months or six months before benefits begin.

Income Protection Insurance vs. UK Mortgage Protection

Some homeowners believe that mortgage protection is sufficient coverage in the event of an illness or accident, and they don't see the need for Income Protection Insurance /Income protection cover. Mortgage protection is typically more attractive because it is less money up front for peace of mind. However, it is important to note that the average mortgage protection only lasts up to two years, while Income Protection Insurance can cover you for up to 25 years – or the length of your mortgage. Income Protection Insurance will also cover your other obligations, giving you even more peace of mind and offering a better value for the pound.

If you are worried about what would happen to your family and financial obligations if you were no longer able to work, consider the benefits of Income Protection Insurance. For a low monthly cost, you can have peace of mind in knowing that your family will be covered if you become sick or injured and can no longer support them financially.

 

Income Protection Insurance

You will often find that with the majority of UK Income Protection Insurance / Income protection cover plans they will have a deferment period built into them.  This is the period when you are initially off from work during which the plan will not pay you.  During this time you are expected to make your own arrangements to survive on.  However, there is the option to get the payment backdated to day one once your deferment period has finished. There are different deferment periods to choose from, these are normally 4,13,26 and 52 weeks. What you will often find is that the longer the deferment period, i.e. the longer you initially go without payment on the plan, the cheaper it will be.  Ideally you should take into consideration your current occupational benefits, unless you are self employed, when considering how much benefit you require and when you wish this benefit to be paid.  

 

Ask us to come and have a friendly chat about your UK Income Protection Insurance /Income protection cover needs

 

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