Many of us have financial commitments that need to be taken care of regardless of whether we are unable to work because of illness or injury however, how many of us have a policy in place such as Income Protection that would cover us in these circumstances?
Could your family cope financially if you could not work?
This question is especially important if you provide the main source of income for your dependent family. Could your family afford the mortgage, rent or any loan repayments or would they need a financial support system to help them if you were unable to work?
Can you cash in an Income Protection policy?
No, an income protection does not have a cash in value. It is important that you keep up the monthly premiums to enable to claim from the policy when the unexpected happens. In most cases the premiums are not collected when you are claiming from the policy.
How much does Income Protection cost?
The cost of an income protection policy will vary and depends on a number of things including the level of income you want to cover, a policy covering a £4000 per month salary would cost more than a policy covering a £1500 per month salary. The deferment period would also have a relevance. If you want to be able to claim after 4 weeks of illness or injury then this would be more expensive than having a policy with a 54 week deferment period. If you know you can survive financially for 12 months without claiming from your policy this would effect a saving on the annual premium paid.
What happens when you retire?
Income protection cover is only designed to last as long as you are employed. Once you have retired the income protection policy would generally come to an end.
If you would like to find an income protection policy that would cover you for illness or injury whilst you are employed there are a number of providers who can offer cover of this type in the UK and around the globe. The Medigest Business Directory can help you to find a financial adviser who can help you to find a policy that suits your needs. https://www.medigest.uk/directory/