To find out if you need an Income Insurance Policy, you need to carefully consider the following: What would happen if you had a serious illness, or developed a disability that meant you couldn’t work? If you are self employed, or employed but don’t have sick pay to fall back on, then an Income Insurance Policy is worth seriously thinking about.
What are Income ‘Insurance Policies’?
This is a long term policy where payouts are monthly rather than a lump sum payout that you would get with Critical Illness cover for example. It is also different from the widely known, but also commonly mis sold, Payment Protection Insurance (this is supposed to cover debt repayment if you can’t work)
Why you may not have heard of ‘Income Insurance Policies’ before
Income Insurance Policies are a lesser known area of insurance policies, many people don’t recognize the importance of protecting their income even though the percentage of employers supporting their staff for more than a year if they are off work, is extremely low. Life Insurance, or Private Medical Insurance are much more popular. In fact, more households buy pet medical insurance policies than Income Insurance Policies. The reasons for this once again come back to the fact that little is known about them and they can appear more complicated varying considerably from policy to policy. Policies will differ on exactly when payouts start, what constitutes incapacity to work, and how much cover you need to buy.
All policies will have some jobs or occupations that are completely off limits. These are generally ‘dangerous’ jobs, such as working at heights, and will not be eligible for cover at all.
In general Income Insurance doesn’t cover the following:
- Pre-existing medical conditions
- Drug-alcohol abuse
- Disabilities or illnesses if you are involved in war, riot, invasion or terrorism
- Self inflicted injury
You may not need Income Insurance if you have; substantial savings, family or a partner that could support you, the option of taking early retirement, think you get by on your sick pay until you are able to go back to work. Unfortunately not all of us have these options.
Peace of mind
Your current lifestyle
If something happened that could seriously affect your income, not only would you have the upset and possible trauma of dealing with a serious illness or disability, financial pressure could also mean that you have to start cutting corners and accept a less comfortable lifestyle than you are accustomed to. This, coupled with a serious illness or disability, may be simply too much to bear.
Taking out an Income Insurance Policy can provide you with peace of mind, should the unexpected happen. It will be a unique policy to you and a source of income you can rely on, that’s affordable, and leaves you and your family feeling assured.
For more information regarding Income Insurance Policies please don’t hesitate to get in touch with us on 01743 364377 or contact us by email.