Will income protection insurance work for you?
Financial products can prove invaluable for some, whilst for others their worth is limited due to the particular circumstances individuals are in. Income protection insurance is one such product, which can be a lifesaver in certain circumstances, but is not suitable to all. Here is our look at whether income protection insurance will work for you.
Income protection insurance is a product designed to protect individuals who fall ill and risk losing their income as a result. In the majority of instances, this product is particularly well suited to individuals who are self-employed, or who are employed but do not have the safety net of sick pay to fall back on.
Income protection insurance makes a lot of sense and the premiums are subject to tax relief. If you do decide to take out income protection insurance it will provide you with the peace of mind you need. It is essential to set the premium at a level you can afford whilst still providing you with enough income to meet your expenses.
There are certain circumstances where you may think income protection insurance may not be necessary:
If you are entitled to sick pay
Employees who have been at the same place of work for some time will be entitled to an employee benefits package which will include sick pay for six months or more if you are unable to work. This can help to maintain mortgage payments and living costs; but what happens when the six months has passed…
If government benefits are sufficient for you to get by
With the recent cuts to benefits which were insubstantial anyway, you should think long and hard about whether benefit payments will be enough for you to live on.
You have enough savings to support yourself
Savings will not last forever. If you are using them now, will anything be left when you reach retirement age?
You are already nearing retirement age
Could you afford to retire early? If you are unable to return to work you may be entitled to take your pension early.
Your partner or family will be able to support you
If your partner earns enough money to support you or your children have grown up and can cover your expenses, income protection insurance may be an unnecessary expense.
If none of the above apply then income protection insurance can provide the peace of mind you need, offering protection against a diverse range of illnesses and situations for years to come.
Call 1890 917 917 for further information