What You Need to Know about Income Protection

When it comes to insurance, people tend to be mindful of their cars, home and contents and their businesses. Too frequently we see that people either neglect or simply don’t consider protecting their income. There’s no disputing that funding your day-to-day life is a key priority and purpose of work. Yet even so, many fail to acquire income protection and properly address the possibility that something might happen to them which could compromise their ability to provide for themselves and any dependents.

Income Protection Cover – What’s it for?

When illness or injury affects you in a way that prevents you from working, income protection is the relevant type of insurance. The cover pays policy holders a monthly compensation (usually up to 75% of your salary) during the time they are unable to work and make a living. Needless to say, the reduction of financial burden during what is already surely a stressful time is invaluable. When ailment prevents you from working, emotions and uncertainty can run high; income protection means you have one less thing to worry about.

Income Protection and the COVID-19 Economy

The economic burden of the COVID-19 health crisis has led to income protection policies receiving a lot more attention. People are particularly concerned if the insurance will cover them losing their job during this time. The viability of taking out a policy now for threat of COVID-19 is also in question.  The frustrating response to these concerns is that it all depends on the specific policy.

Generally, the cover’s focus is on illness or ailment. Losing your job, being made redundant or taking on reduced working hours are not typically covered. Specific policies might address these risks, though it’s all but guaranteed that they will not be included automatically.

Other Advantages and Considerations

Working with an insurance broker is the recommended course of action for someone contemplating income protection. Like so many other policies, it can prove to be a difficult contract to navigate. Collaborating with a broker ensures your securement of the best policy for your needs. A broker can also make sure that you understand what exactly you are covered for.

Income protection should be of special interest to anyone who is a small business owner. If you are responsible for running your own company, you would seriously risk not only your income, but the business’ operation and longevity by being unable to work.

 

Income protection has proven to be a saving grace for those who become unable to work time and time again. It’s not a good position to be in trying to support yourself or a family while unemployed. If you’re seeking more information on income protection or are looking to work with a skilled broker, get in touch with the team at Provide Wealth.

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