Income protection insurance pays you a monthly income if you are unable to work because of accident or illness.
If you are thinking about legal and financial planning to sort your affairs, income protection insurance might be one area of interest.
You can insure up to between 50-75% of your income, or a fixed monthly amount that would cover your essential outlays.
If you have some money in savings or know that you could manage for a few months without an income then you can arrange for the cover to start after a longer ‘waiting’ period which reduces the monthly payments. The longer you leave this the lower the cost will be as the risk to the insurers is reduced.
Typically income protection insurance cover will be set to start paying out between 1-12 months of the date of your claim. You can have income protection insurance cover arranged so that it will increase once you start claiming or remain level. A professional can help advise on the options.
Income protection insurance can afford a bit of peace of mind. Do remember to get advice and update this advice regularly. You might start of paying a premium related to current income and forget that when that income changes, you may no longer be covered in the same way.
Income protection insurance, like any other sort of legal or financial cover, should be regularly reassessed.
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