Income protection insurance typically pays out money to you if you are unable to work because of illness, injury or redundancy. The idea behind the insurance is to help you maintain your lifestyle before you were unable to work. The money you get paid should you need to claim is tax free.
The insurance is essentially there to take away stress at what is a difficult time, should you be unable to work due to redundancy or illness.
Income protection insurance policies offer short-term protection for your finances. The maximum benefit period is normally 6 or 12 months.
If you choose a maximum benefit period of 6 months the monthly benefit payable under this policy is for a duration of less than 12 months. Income protection insurance policies are normally purchased by the main income earner in a household.
Bear in mind income protection does not cover you if you have had your hours cut, it is there to cover you if you are made redundant or you are unable to work due to illness or injury.
Also with income protection insurance always remember to read the policy information carefully to ensure you know exactly what you are covered for, as policies do vary.
Here at Covermysalary.co.uk we believe that protecting your income against redundancy and accident or sickness can be extremely important.
Many people could benefit from insuring themselves against the risk of losing their income. However, getting the right income protection insurance or mortgage protection insurance for you isn't simply a matter of choosing the cheapest policy. You must also take into account the quality of the cover that is on offer.
Have your circumstances changed?
- Just had children?
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