The Secret of Income Protection
Our personal circumstances can change overnight. One day you are fit, healthy and happily working toward your future. The next day you may be unable to work due to accident or illness. Are you ready for the worst?
We are all happy to spend money on home insurance, travel insurance, insuring our belongings, our cars and our health. How would you pay your bills and look after your family if you couldn’t work due to illness? Statistics indicate that there is a higher chance of becoming disabled during your working years than of dying before reaching the age of 65. But many people stil don’t take out insurance policies that would protect their incomes.
Anybody who works for around 20 hours or more per week should be able to take out an income protection insurance policy at a reasonable cost. These policies are intended to provide you with adequate income in the event that you can no longer earn a living. So if you have bills to pay, a family to feed and a household to maintain I think one of these policies is essential.
A good income protection policy will cover both physical and mental disorders. Some policies don’t cover mental illness or issues with the nervous system. It is recommended that you ensure that your policy protects you from any form of disability that would prevent you from doing your work and earning a living. Ideally you should have an income protection policy that is flexible enough to support you if you are able to return to work on a part time basis.
Another consideration to bear in mind is what will happen if you change your role or employment. Be certain to ensure that your policy will allow you to change your job or employer.
We all think that the worst will not happen to us but each year 27,000 people in the UK leave employment due to ill health or injury. Make sure that your family are secure in the event that you can’t work any more.
