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How would you pay the bills or your mortgage/rent if you were sick or accidentally injured and couldn't work?
Every year nearly a million people find themselves unable to work due to a serious illness or injury (according to the ABI). Could you manage on statutory sick pay? At £88.45 per week this is unlikely to cover your bills. Would this potentially wipe out your savings?
The aim of income protection insurance is to provide an income to help replace any loss of earnings due to ill health or accidental injury.
It is not the same as critical illness insurance which pays out a lump sum on diagnosis of a specified critical illness.
You are most likely to need this benefit if you are employed or self-employed and do not have sick pay to fall back on. It doesn’t matter whether or not you have children or dependents – if you would be unable to pay the bills as a result of sickness you should consider income protection!
It may also be a consideration if you are single with a mortgage or rent as the continued income will cover this expense.
Any income received from the policy can be used to cover your existing out goings for example mortgage repayments, rental and bills.
The cost will depend on the policy and your circumstances – everything depends on getting the right policy so it is best to seek advice!
A number of factors are considered including:
So, if you would like to discuss income protection and want a protection quotation, or if you would like to review your protection requirements give us a call.