How would you cope WITHOUT your INCOME
Most people insure their homes, their pets and even their holidays but hardly anyboby insures their most important asset – their INCOME.
Your income is probably the most important asset that you possess. Without it, your entire lifestyle is at risk. One of the biggest threats to your ability to work is your health – something that most of us take for granted.
It’s all a question of priorities - If you’re unable to work due to illness or injury, you and your family will be the first to suffer – your income dissapears and if you have any savings, sooner or later they will disappear aswell.
With over 2.6 million people in the UK claiming benefit from the state for incapacity (source DWP May 2009), the likelihood of this happening to you may be greater than you think.
Income protection can ensure financial stability for you, your family and even your pets.
The policy pays a monthly tax-free income until you recover – right up to retirement date if needs be and the payout can be level or set to rise with inflation.
The maximum cover you can have is between 50% to 65% of your gross income depending on which company provides the cover. The monthly benefit is paid tax-free and along with any state benefits you maybe entitled to, it should mean that you can maintain a similar level of take home pay that you currently have.
Some employers may provide sick pay for a few months and with the flexibility of Income Protection plans, the cover can start when your employer stops paying you. This provides you with the security of knowing you will still have money coming in every month to pay all the bills regardless of how long it takes to recover from your illness. The claim will be paid either until you are well enough to go back to work, or until your selected retirement age.
Everyone should have this cover
The State simply does not provide enough. Being unable to work could have serious consequences for your financial security, and therefore Income Protection is one of the most important insurances and should be a priority.
The amount of cover is based on a percentage of your gross earnings and is suitable for both employed and self-employed people. People who are unemployed or house persons are also eligible. This could be necessary for people who undertake vital duties within the household (such as carers) who are not paid a wage through an employer.
Our professional advisers can offer much more detailed advice on the benefits for individuals considering such a policy. We will save you time and money by searching the Income Protection products available within the entire UK marketplace for you, finding the most suitable policy for your circumstances.
