This is a question we hear often as many people do not know what income protection is or what it does.
So what is Income Protection?
Income Protection is the most important protection you can have for yourself and for your family, Income protection is sometime a taboo subject, but it is time to talk…
So to put it simply if you were off work due to sickness or injury you would get a tax free income replacement each month. This is not to be confused with critical illness which is normally a serious diagnosis and upon diagnosis will pay out one lump sum payment.
A regular payment if I cannot work?
Income Protection will pay a monthly amount until you were able to return to work if you were off work due to a bad back, accident or any other illness that is not serious enough to be claimed on by critical illness but keeps you off work for a period of time. This will allow you to pay your monthly commitments for example a mortgage, rent and other essential bills like gas, water, electric. Not only do the essential bills require paying on a monthly basis but so do the luxury items like meals out, Sky TV, day trips, with income protection you do not need to change your lifestyle whilst you are off work due to sickness or accident.
We all have protection for the “essentials” in life: cars, Derek the dog, your home but without your income you cannot afford to protect anything.
Are there any other benefits to Income Protection?
Having income protection will ensure your credit rating is not affected as missing payments on mortgages or essential bills may impact your credit rating affecting your ability to lend again in the future.
It costs much less that you think and give you peace of mind that all your bills will be paid.
If you are considering remortgaging your home, contact A Move Brokers on 01244-478-780 for a discussion and an impartial “whole of market” quotation.