Income Protection offers you financial support if you find yourself unable to work through illness or injury.
Protecting your income incase of unexpected events will give you peace of mind that all of your major outgoings such as mortgage/rent and utility bills will be covered.
Income protection allows you to pay your everyday bills should you become ill and be unable to work. Giving you peace of mind that your mortgage, credit card and other outgoings are covered.
Accident, sickness and unemployment insurance (known as ASU) offers similar cover to income protection, with the added benefit of cover should you be made redundant.
There are different types of policy available, covering general outgoings or specific loans such as your mortgage or credit card debt and even your divorce or child maintenance payments.
If you are unfortunate enough, through no fault of your own, to lose your job or are unable to work due to an accident or sickness, income protection policies can give you the ability to cover your expenses. Income protection policies are designed to allow you to focus on getting healthy or getting back into work by reducing the financial stress that inevitably follows being made redundant or unable to work due to an accident or sickness.
There are different types of policy available, covering general outgoings or specific loans such as your mortgage or credit card debt, or even your divorce or child maintenance payments.
When considering what type of policy to take out, you need to consider how long you are likely to need help if you are not able to work, how much you want the policy to pay out and how long you wait before the policy kicks in. As a general rule of thumb, the longer you are prepared/able to wait for the policy to start paying, the cheaper the premium will be.
Most insurers will pay out for periods up to 12 months and usually you can choose a percentage of your gross monthly income to cover.
SoSmart Money can give you fee free advice from a specialist income protection adviser, to help find you the most suitable product for your needs.