Protecting Your Income Guide

Income protection is a fundamental financial need for many people, whether they know it or not. For working individuals, your ability to earn a living is probably the single most valuable thing you posses.

Threats to your income such as the risk of illness or injury can have a devastating effect on your finances. Some eventualities may only have a temporary short-term effect, others may be long-term or even permanent. Fortunately, there are income protection policies available than mean you will never need to find out how long you could last on meagre state benefits. It’s a surprise then that this area is sometimes overlooked.

33% of households in the UK could not cope financially if they lost their main income* – ft-note *Credit Action – July 2011″

“The state will provide” – Are you willing to bet your earnings on that?

£81.60 — That’s how much the State currently provides in sick pay each week. Could your family survive on this? – ft-note, August 2011.

Income Protection Benefit plans pay a monthly benefit if you’re unable to work due to incapacity caused by illness or injury resulting in a loss of income. This benefit can be used in any way you like – from helping towards paying the mortgage repayments, household bills or helping to cover medical expenses. The benefit could help protect you and your family against financial difficulty and help you maintain your current lifestyle.

So if you’re concerned about how your loved ones could cope financially if you were unable to work due to incapacity caused by illness or injury now could be the time to think about an Income Protection Benefit plan. Why not speak with one of our helpful protection experts to see what options are available to you.

There are essentially two types of policies that can provide an income in the event of you being unable to work for health reasons:
• Permanent Health Insurance
• Accident & Sickness cover

When it comes to weighing up your options between which of these represents the best protection for you it’s important to understand that PHI (Permanent Health Insurance), ‘beats’ Accident & Sickness cover every time due to the variations between these types of policies. The only exception to this is, sometimes, cost. This is due to the fact that unlike AS cover, PHI is priced according to your age, gender, occupation and smoker status.

There are also ‘hybrid’ policies that in some ways bridge the gap between these two main types of cover. In basic terms they are similar to ‘budget’ limited payout period plans but allow the addition of unemployment cover.

Why not speak to one of our experts to find out more, have your questions answered and get a personal, no obligation quote?

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