Income Protection

What would you do if you never got another pay packet ever again?

All those plans you have made for the future would certainly change. How would you afford the mortgage, the food bills, bringing up your children?

If you are unable to work long term through illness or injury, facing the future until you get your pension on Employment and Support Allowance (assuming you pass sufficient tests even to qualify) of up to £105.05 per week, is a serious concern.

Yet the cost of protecting your income should the worst happen can be a lot less than you think.

First you need to work out how much income you would need to meet the essential bills and the cost of running the family. The good news is that any claim is paid out free of tax which makes it a lot easier when calculating how much cover you need.

You then need to decide on how long you could manage financially if you suddenly stopped working. This is important because these policies pay out after a “waiting period”; the longer the time gap the cheaper the premium. So you need to check how long your employer would continue to pay you and how long for. Also how long you think you could manage if you used up some of your savings.

Because any claim could end up being paid for a great many years, you may want the cover to increase each year to take account of inflation, and you also need to decide at what age you want the cover to stop. You can also choose whether you want a plan where future premiums are guaranteed in the future or one where they can change.

One of the most important considerations is when your plan would pay out. Some plans will cover you if you are unable to carry out your own occupation, and others will only meet a claim if you can’t follow any occupation. There is nothing more frustrating than an insurance company that won’t pay out when it comes to a claim, so making sure that you get the right sort of plan in the first place is very important.

Our advisers will discuss your needs and be happy to recommend a plan to meet your own individual circumstances, and being independent we can choose from the whole of the market place available to us rather than just one company’s product.

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