Income Protection Insurance

Income protection insurance is a valuable financial tool that offers peace of mind and financial security to individuals and families. In this guide, we’ll explore the ins and outs of income protection insurance, helping you make an informed decision about this crucial form of coverage.

MAIN - Income Protection Insurance - Wirral - Tips

Income Protection Insurance Wirral

Last Updated: 10th October 2023

Understanding Income Protection Insurance

Income protection insurance, often known as IP insurance or income replacement insurance, is a financial product designed to safeguard your financial stability when unforeseen circumstances, such as illness, injury, or disability, prevent you from working. It guarantees that you can maintain your standard of living and meet your financial obligations even during challenging times.

Key Features of Income Protection Insurance

Monthly Income Replacement: When you hold an income protection policy, you pay regular premiums to your chosen insurer. In return, if you’re unable to work due to a qualifying illness or injury, the policy provides you with a monthly tax-free income. This income typically replaces a significant portion of your salary.

Waiting Period: Every policy has a waiting period, also known as the deferred period. This is the time you need to be off work before your policy starts paying out. It can be customised to suit your needs and budget, with options typically ranging from 1 to 12 months.

Benefit Period: The benefit period determines how long the policy will pay out. It can range from a few years to until your retirement age, providing flexibility to align with your specific circumstances.

Coverage Amount: You have the freedom to choose the level of income protection that suits your financial needs. The coverage amount is often calculated as a percentage of your pre-disability income.

Importance of Income Protection Insurance

Financial Stability: Income protection insurance acts as a financial cushion during periods of illness or injury, ensuring that you can continue to cover essential expenses, such as mortgage payments, bills, and daily living costs.

Peace of Mind: Having a reliable source of income even when you can’t work provides peace of mind for you and your family. You can focus on your recovery without the added stress of financial uncertainty.

Protection for Self-Employed Individuals: Self-employed individuals, in particular, can greatly benefit from income protection, as they don’t have access to the same sick pay benefits as employees.

Customisable Policies: Income protection insurance policies are highly customisable. You can tailor the waiting period, benefit period, and coverage amount to align with your unique needs and budget.

M.A.I.N Your Mortgage Brokers on The Wirral

Income protection insurance is a valuable financial tool for individuals, providing financial security and peace of mind during challenging times. It ensures that your financial commitments are met, allowing you to focus on your recovery without worrying about money.

If you’d like to explore income protection insurance further or discuss how it can complement your mortgage plans, please don’t hesitate to reach out. Our team is here to assist you. Simply give us a call on 0151 625 5995 or click to book an appointment.

Income Protection Insurance Q&A's

What isn’t covered with Income Protection Insurance?

It is difficult to say what would and would not be covered, as a lot of this depends on the choice of cover. As mentioned above, the policy holder can adjust the policy terms and conditions accordingly. The more you exclude, the lower the premium.

Do you need a form of income protection?

Some people assume that if you don’t have children, you don’t need to be protected. That isn’t the case. If you won’t be able to pay your bills without your income, this form of insurance is needed. If you are self employed and don’t have sick pay to fall back on, this type of insurance may be perfect for you.

Who Needs Income Protection Insurance?

Income protection insurance is relevant and beneficial to a wide range of individuals, including:

Working Professionals: Anyone who relies on their income to cover expenses and maintain their lifestyle.

Self-Employed Individuals: Especially crucial for those without sick pay benefits from an employer.

Parents and Caregivers: Ensuring financial stability for your family is of utmost importance.

Contract Workers: Freelancers and contractors can protect their income in the event of illness or injury.

Sole Breadwinners: If you’re the primary income earner in your household, income protection is vital to safeguarding your family’s financial well-being.

Insurances

Protecting you & your family should the worst happen.

Below, you will see a list of insurance options we can help arrange for you.

Mortgages

It’s not just Income Protection we can help with, we can help you achieve your ambitions and arrange a mortgage for many different circumstances.

Below you will see a list of circumstances we can assist with: