If you are concerned about the state of the economy or perhaps you are worried about being unable to provide for yourself and your family, if you were unable to work, you might want to consider protecting your income with income protection insurance cover.
The main benefits of the cover are the peace of mind and the monthly income it provides if you were to lose your job due to an involuntary reason.
More About The Policy
The income protection insurance cover will pay you for a period of 12 – 24 months depending on the provider you choose.
The policy will pay out on three main types of involuntary unemployment and they are redundancy, sickness and accident.
Most lenders will have maximum benefit levels so your income will be a percentage of your gross salary. With this in mind you need to ensure the benefit level you choose is adequate.
Some providers will limit the number of claims to one per policy, so this is something you need to know before making a decision.
Policies are usually linked to debts such as loans and mortgages so these debts are often repaid first once the benefit payments start.
In order to make a claim, most providers have deferment periods of 30 – 90 days so you should be aware of this.
How To Choose A Provider
When choosing a provider you should look for companies that provide good value policies for the premiums they charge. The company should be known for it’s ethical practices as well.
The cost of premiums is therefore the main differentiator between providers. If you were to obtain a quote from a high street lender, you will see that the premiums are much higher than that of an independent provider.
For illustration purposes, British Insurance is an ethical provider of protection products and Managing Director Simon Burgess says ‘At British Insurance, we believe in providing value for money, this is why we can provide our customers with up to 80% savings on loan insurance and up to 40% on mortgage protection products’
In addition to good products at affordable premiums, your provider should take the time to explain the terms and conditions of the policy to you. There are often exclusions that go unnoticed and it is these exclusions that can prevent your claim from being successful.
You should read your terms and conditions carefully and question anything you don’t understand. Make sure you know everything you need to know before signing up.
Conclusion
Income protection insurance cover will help take care of your monthly financial commitments if you were to lose your salaried income. Job loss does not have to be stressful. If you have a replacement income it will make finding a new job or recovering from an illness so much easier.
If you are keen to protect your income and maintain your lifestyle during such a difficult time then you may want to consider obtaining an income protection insurance cover policy.
For many years I have been a staunch campaigner against the major names in finance who, I believe, rip-off their customers by selling over priced, often unsuitable payment protection insurance (PPI) cover.