What would happen to you and your family if you were to miss a month of work? What if you were so sick that you missed a couple of months of work? For most people, losing months of income would be devastating. Assuming you’re like most other people, you would fall behind on your bills and possibly lose your home due to unpaid rent or mortgage. No one wants to risk losing everything they’ve worked hard to achieve because they’re sick or injured. If you’d like to prevent a disaster from happening, keep reading to discover the benefits of income protection insurance and how it can help you and yours.
How Does Income Protection Work?
If you cannot work because of illness or injury, income protection insurance will provide regular payments that replace a portion of your income. Typically, the insurance company will pay out between 50% and 65% of your income, and you would receive these payments until:
- You can start working again
- You retire
- You die
- You reach the end of your policy
If your policy is still active, you can claim income protection more than once.
How to Protect Your Business
Income protection insurance works for business owners, as well. According to Nationwide, if you’re ill or injured and unable to open your business, income protection can help cover some of your expenses, including taxes, mortgage payments, and payroll. You’ve worked hard to be a small business owner, don’t risk losing it all because you’re sick or injured, purchase income protection insurance today.
Who Doesn’t Need Income Protection Insurance?
While income protection insurance is an excellent program for some people, it’s not for everyone. If you fall under one of these categories, you most likely won’t need to apply for income protection insurance:
- Sick pay, provided by your company, is enough to get by on
- You could survive on government benefits
- You have enough money in your savings to support yourself
- You can take an early retirement
- Your spouse or family will help you
How Much Does Income Protection Insurance Cost?
The amount of money you’ll pay for income protection insurance depends on many factors, including:
- Your age and occupation
- Whether you smoke
- The percentage of income you’d like to protect
- The waiting period until the policy pays out
- The illnesses and injuries covered
- Whether you pay a standard premium or a guaranteed premium
Choosing a plan can be stressful and confusing, so ensure you look at iselect income insurance protection to have all your questions answered by professional agents.
How to Purchase Income Protection Insurance
It would be best if you shopped around for the best deal whenever you purchase something. Purchasing income protection insurance is no different. Because premiums and criteria can vary depending on the insurance company, it’s crucial to search for the best company for your needs before deciding. Remember, you’re the one who needs to be protected, so you should get the insurance you need at an affordable price. While you should research the different insurance companies first, specialist brokers can also provide income protection insurance, but you may pay more in the long run.
No one wants to lose their home because of something they can’t prevent. No one wants to get sick, and no one wants to get hurt, but unfortunately, those things can keep someone out of work for long periods. If you’re ready to protect yourself and your family in an emergency, consider purchasing income protection insurance. You may not be ill or injured right now, but you never know what will happen in the future, and that’s what you need to be prepared for.