Life insurance helps to protect those loved ones you leave behind, whereas income protection protects you and your loved ones whilst you are still alive but unable to work. Income protection is an insurance policy that will pay you a tax-free monthly lump sum – which can be used for mortgage payments, bills, food etc – should you become unwell and signed off work by your doctor. Income Protection is there to reduce the risk of defaulting on your monthly repayments or running the risk of losing your home altogether.
Why you should have it
Recent figures show that just 6% of the population have income protection in place, meaning that the UK’s homeowners are woefully underprepared to continue paying their mortgages should the worst happen. Income protection allows you to continue to make your mortgage repayments when you are no longer receiving a secure income and more importantly allows you the time to focus on your health.
Type of cover
Policies can vary in the level of cover they offer. You should consider covering your essential living costs, like your mortgage payment and essential bills. You can also choose when the payments would start – the deferment period. This would depend on your employer’s sick pay policy and your level of savings. There are also options for the length of time the payments would be made – a specified term, until you are well enough to return to work or even until retirement age. As well as when purchasing a property, it’s important to review your income protection policies when making changes to your existing mortgage term, monthly payment, or after a change in employer.
With so many insurers and with so many different policies it’s important to understand the cover you need. At 177 Protect our team of protection experts will ensure that they build a deep understanding of your personal, financial and employment circumstances. We will search the entire market to recommend the right level of income protection to meet your needs and budget.
Speak to our team about Income Protection today
To find out more speak to an adviser on 01249 474959 or fill out the form below and we will be in touch.