Would you be able to manage without income payment protection if you lost your income to redundancy or incapacity? A loss of income for many months could make your life very uncomfortable financially. You would still have to try and find the money to continue meeting demands such as your food bill for the family, your utility bills and your rent. The policy would provide an income each month which you would be able to use towards these bills and more.
You can take your income protection with a standalone provider by choosing the amount of your income you want to cover. This amount would have to be pre-agreed by the provider as all will set a limit to the amount that you can protect. This income is then paid to the policy holder after the deferment period and for up to the term of the cover if it was needed that long. With some providers you would have to wait for up to 30 days before making your claim but with others you could have to stand to the first 90 days before making your claim. When checking with the provider to find out when you could make your claim you would also have to check to find out how long you would be eligible to claim on your income. Some providers could provide you with an income for up to 12 months while other providers could extend this to 24 months.
When you apply for your protection you would have to take into account the events you want to protect as this would go towards setting how much you would have to pay for your insurance. You could take out a policy for unemployment and incapacity together and claim if you were to become a victim to either of these events. However you might just want a policy to provide you with an income if you should become redundant. Alternatively you might just want protection against incapacity alone should this suit your lifestyle better. Check also to find out if your chosen provider includes carer cover in with your chosen policy as some generous ones would provide you with your benefit if you had to take care of a close family member.
Income payment protection insurance should not be confused with a similar named policy income protection insurance. This type of policy would only payout for incapacity and would pay out up to your retirement if it were needed.
Your income payment protection insurance could make your time of unemployment or incapacity go by much easier. You would have a substantial sum of money to rely on which would go towards providing peace of mind that would allow you to concentrate on making your recovery and getting back to earning your own living or allows you time to search for work.
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