Income Protection Insurance

Income Protection Insurance is a type of insurance policy designed to provide financial support to individuals who are unable to work due to illness or injury. It typically pays out a portion of your income usually up to 70% and it offers a steady stream of income, helping you cover essential expenses such as mortgage or rent, utility bills, groceries, and other financial obligations. Unlike critical illness insurance, income protection provides cover for much lesser serious illness and injuries.

By having an Income Protection Insurance policy, you will benefit from the following:

• Provides regular payments that replaces your income if you are unable to work due to illness or injury.
• Typically pays out between 60/70% of your income if you are unable to work.
• Typically covers most illnesses that leave you unable to work in the short or long term, depending on the type of policy and its definition of incapacity.
• Can be claimed on multiple times as needed while the policy is active.

There is usually a pre-agreed waiting (deferred) period before the payments start.

Usually the longer the waiting period, the lower the monthly premiums.

You will need Income Protection Insurance if you rely on your income to cover essential expenses and would struggle financially if you were unable to work due to illness, injury. Here are some situations where Income Protection Insurance could be valuable:

• Financial Dependence on Your Income:
• Limited Sick Leave or Benefits from your employer
• Sole Breadwinner or Significant Contributor to Household Income:
• Lack of Savings or Emergency Funds: High-Risk Occupation or Health Condition:

Even though we have stated some reasons above, in essence we all need income protection, as no one can survive financially with no income.

To get an accurate idea of how much Income Protection Insurance will cost you, it’s best to request quotes from insurance providers. They will assess your individual circumstances and provide you with tailored quotes based on your age, health, occupation, income level, desired coverage amount, waiting period, benefit period, and any additional features you may want to include in your policy.

Comparing quotes from multiple insurers can help you find the most suitable coverage at a competitive price. Additionally, it’s essential to review the terms and conditions of each policy carefully to ensure it meets your needs and provides adequate protection.