There is no longer such a thing as a ‘job for life’ and while no one likes to imagine the worst happening it can and it does and if you haven’t taken steps towards planning for what would happen if you were to lose your income, then you could be in great financial difficulty if you cannot afford to pay your essential monthly outgoings. Income protection insurance, however could give you great peace of mind not to mention security by replacing your income should you become out of work, providing it’s suitable for your circumstances.
An income payment protection insurance plan will give you a tax free sum of money each and every month once you have been out of work usually for 30 days or more. It will then continue to cover your lost income up to a set amount for up to 12 months if it is needed and some providers pay for up to 24 months.
Income protection insurance is an invaluable safety net on which you can fall and can make find another job and get back to work. While it can be valuable protection the product isn’t suitable for all circumstances and this isn’t always made clear at the time of taking out the policy. Exclusions that could mean you wouldn’t be eligible to claim include being in part time employment, being retired, and self-employed or suffering from a pre-existing medical condition at the time of taking out the cover.
You should always check the small print for any exclusions along with the key facts regarding an income protection insurance policy and you can get these facts from a standalone provider if you are not sure. A specialist in payment protection can always give you advice along with giving you the cheapest premiums for your income protection insurance policy.