Income Protection Insurance

By: Simon Burgess

Have you ever stopped to consider how much you rely on your income each month? Very few people actually do until it's too late and you are without your income. A loss of income can occur for many reasons. Remaining fit and healthy without falling ill is almost impossible; even if you are only out of work for a few days, you could be left feeling the pinch. Imagine how you would feel if you lost your income for several months. Income protection insurance would allow you financial freedom when you need to keep on top of your essential outgoings.

Income protection insurance generally covers your income up to a certain amount. A policy can be taken out for a premium each month that is based on how much of your income you wish to insure. All providers will state how much per month the limit would be and this is the amount you would receive each month you remained incapacitated or unemployed. It would also take into account your age when applying. If you take age related cover from those providers who offer it, then those in the younger age group are able to benefit the most from a policy. Once you have taken out the cover the premiums you pay remain the same for as long as you pay them. This means that they cost of the insurance will not go up the older you get.

Income protection insurance can also be used to ensure that your mortgage repayment could be kept up. Ensuring you have the money for your mortgage each month is essential and a priority. You would also be able to continue meeting any loan or credit card requirements you have. In fact, you could continue with your lifestyle as if you were working and keep up all your essential outgoings.

You would not have to worry about your financial commitments or have to juggle figures each month. You would also not have to dig deep into savings you have stashed away or apply for State assistance. While sometimes you can apply for help from the State, there are usually many conditions you have to meet. For instance, you need to be claiming income support to be eligible to claim benefit this way. You also cannot claim if you have savings over a certain amount, or if your partner works full time.

While you might think your bank account holds enough to get you by, you would be surprised at how quickly the balance would drop once you started digging into it. While there are certain conditions you have to meet to qualify for income protection insurance, you will be given the information and advice so that you will know immediately if you are able to benefit from taking out protection. A policy varies in when it begins to provide and for how long. Usually it is within 30 and 90 days and then continues for somewhere between 12 and 24 months. Again checking out the terms and conditions of the cover will tell you when and for how long, along with providing information regarding the exclusions which may be included in the policy.

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