Income Protection
If you could not work tomorrow, how long could you manage? Income protection pays a monthly income if illness or injury stops you working, so your bills keep getting paid while you focus on getting better.
Keeping the money coming in when you can't work
Income protection is a way to keep the money coming in when you can’t work.
Whether you’re sick, injured or laid off, income protection will provide a monthly income so you can live your life with financial security.
If you could only choose one insurance policy, most people would say they want life insurance. But there’s another type of protection that can be just as important–income protection. Income protection is a way to keep the money coming in when you can’t work. Whether you’re sick, injured or laid off, income protection will provide a monthly income so you can live your life with financial security.
This is an important policy to have because, let’s face it, nobody knows when something bad is going to happen. You could get sick and be out of work for months, or you could lose your job in a layoff. And if you don’t have income protection, you could find yourself in a very difficult financial situation.
Short-term
Short-term income protection covers you for a fixed period – typically between six months and two years – if you’re unable to work due to illness or injury. It pays a monthly benefit, usually between 50% and 70% of your gross income, giving you breathing room to recover without the immediate pressure of lost earnings.
It’s a good option if you have some savings or sick pay to fall back on initially, but want protection against a longer period out of work. Many people use it to cover mortgage payments and essential bills while they get back on their feet.
Long-term
Long-term income protection pays out for as long as you need it – right up to your retirement age if necessary – if a serious illness or injury prevents you from working. Unlike short-term cover, there’s no fixed end date on the benefit, which makes it a more comprehensive safety net for anyone whose savings wouldn’t stretch to an extended period without income.
It typically covers between 50% and 70% of your pre-tax earnings and kicks in after a deferred period – usually one, three, or six months – which you choose when you take out the policy. A longer deferred period generally means a lower premium, so it’s worth thinking about how long you could manage without income before the policy needs to start paying.
For anyone self-employed or without a generous employer sick pay scheme, long-term income protection is one of the most important policies to have in place.
Important policy to have
Income protection can be a very important policy to have, especially if you don’t have any other type of savings.
Most people don’t think about what happens if they can’t work until it’s too late to plan for it. If your income stopped tomorrow, income protection is what keeps everything else in place, so the financial pressure doesn’t compound an already difficult time, providing a monthly income so you don’t have to worry about your finances whilst you are unable to work.
Book a telephone appointment
We look forward to your insurance telephone appointment, if you can have as much information handy on your medical history, that would be great!