Ultimate Guide to Income Protection Insurance
What is income protection insurance?
Income insurance protects you if you are unable to work due to sickness or accident. It’s a type of earnings defence cover to make sure that you get monthly pay before you retire or go back to work or until the selected term. Income protection policy is separate from serious disease coverage. Critical disease cover pays off a lump sum if you contract a life-threatening condition and Income protection policy pays you as monthly income instead of a lump sum.
Mountview Financial Solutions can advise you on your income protection insurance and will find the most suitable and cheapest possible income protection insurance for your case.
What types of income protection cover are there?
The income protection insurance scheme can be either short-term or long-term.
A short-term income security insurance plan can also compensate you for involuntary redundancy. But it is typically limited to a specified amount of time.
In the case of long-term income protection insurance, UK insurers will usually cover you before you return to work, retire or leave. Or it will cover you until the termination of the income security.
There are other forms of loss of income insurance. That includes guaranteed policies, revisable policies and age-related policies. It is important to know that you buy the right income protection policy.
- Guaranteed Plans: Guaranteed plans are subject to fixed monthly premiums. That means you know exactly what you’re going to have to pay each month.
- Reviewable Plans: Reviewable plans are where providers may change or review your monthly premium after a certain period of time due to age or insurer’s attitude towards the risk based on average claims or other economic factors.
- Age-related Plans: Age-related plans are where monthly premium increases as you get older.
Also Read: What is Critical Illness and Buying It?
Do you need an income protection insurance plan?
Find out what your monthly costs are and think of how you will pay them if you lose your salary. If you cannot afford to cover your bills, it may be worth your time to consider an income protection policy.
Income insurance may be extremely helpful whether you are self-employed or employed. It becomes very important if you are the only earner in the family and your family may not be able to afford the monthly bills if your income stops.
Also Read: Level Term Assurance
How do you find the best income protection insurance?
First of all, it is important to understand the right Income Protection policy which can satisfy your needs and for that it is important to do the facts find. Therefore, it is important to take advice from a qualified protection advisor who can understand your needs and advise you accordingly.
How much does income protection insurance cost?
The cost of the income protection policy depends upon the monthly income required and the deferred period of the policy.
It is necessary to find the most suitable income protection for your needs. But, when you need to look at the right income protection package, the monthly premium may also influence your choice. The premium depends on the condition and what you are looking for. Factors that may influence the premium include the monthly income cover , the length of your policy and the level of maximum coverage. For example, the older you are the higher your premium is expected to be.
Some programmes protect sickness and disability, while others cover unemployment because of loss of job or being made redundant by the employer. You should keep these considerations in mind when determining which income protection policy will suit your needs the most.
If you’d like to find out more about setting up a income protection policy then call 02080950120 or send us your requirements on info@mountviewfs.co.uk.
We’ll connect you with one of the protection advisors. They will be able to answer all your questions and help you figure out the ins and outs of how such an insurance product could benefit you.
