If you get sick or injured, and can’t work, income protection pays part (normally a majority) or your monthly income so you can pay your monthly bills as normal.
If you are self employed this is a vital policy, and most employed people on PAYE do not get sick pay from their employer, so it is worth strongly considering if your income is vital to paying the bills.
How does Income Protection Work?
Income protection policies vary, but they normally pay a percentage of your monthly income up to a pre-agreed amount, and because they are tax free, the monthly payment should be a similar amount to your take home salary.
Income protection policies are becoming increasingly popular, as for a low monthly premium you can have peace of mind should you become sick or injured, as this is more common than you think.
When can you claim on your Income Protection Policy?
You can claim on your income protection policy when you have received a sick note from your doctor and you have been signed off work.
- An injury that is preventing you from being able to work. For example, you’re an electrician and you played football over the week which has led to a leg injury and now you’re unable to work
- Stress
- Mental Health conditions
- Physical Health Conditions
Income Protection covers most medical conditions that lead to you being unable to work.
You should consider income protection if:
- You couldn’t cover your outgoings if you get sick
- You couldn’t pay your bills with government benefits
- You wouldn’t get sick pay from your employer (most don’t cover sick pay)
- You’re a single income household
- You’re the main income earner and without you, the household couldn’t pay the bill
Contact The Broking Group Today
As a broker, we have access to panel of insurers and our experienced team will find the policy that’s best suited to your needs. Contact us today for a no-obligation discussion about your Income Protection Policy.