Insurance has a funny stigma to it. Whenever anyone offers insurance the first thing I say is no, they just want more money for doing nothing. What a con! But are some insurances worth having?
We all know that we have to have car insurance and most people have home insurance. A few of us will insure our pets and even our holidays but we do we have insurance for ourselves and where have we gone for this insurance?
What Is The Point of Income Protection Insurance?
Unfortunately, the worse does happen. As I have found out last year tragic things do happen and the last thing you will want to be thinking about is how to pay the mortgage or how you will pay the electricity bill.
Insurance is there to provide you with a form of protection against financial lose should a variety of possible outcomes occur. Protection insurance will provide cover if you are unable to work and can cover up to 65% of your gross salary.
What Sorts of Income Protection Are Available?
There are usually three different things that you are protected against, sickness and accident, unemployment and all three (sickness, accident and unemployment). Other protection insurances might include critical illness cover and life insurance.
It is easy to assume that only the bread winner will need any sort of protection. But don’t forget that if you are a stay at home mother (or father) you have a monetary value too. Should the worse happen to you, how much would your role cost to replace? Child care is expensive!
I found some good information about Income protection on the Future Proof website which is a specialist insurance company who mention the importance of protecting your income if you become unable to work due to an accident or sickness.
Is Income Protection Cover For Me?
Every year nearly a million people find themselves unable to work due to a serious illness or injury according to the Association of British Insurers.
Unfortunately most of us would struggle to survive on statuary sick pay at only £96.35 per week this is unlikely to cover the bills. Many of us will be wary of income protection insurance as many myths still surround it so take the risk that we will not need it.
Myths like companies don’t pay up? Yes they do! In fact 86.5% of claims in 2020 were paid out. Those that weren’t were due to inaccurate information being given by the policyholder.
Another myth that puts people off is the price. If you are careful about where you go and shop around it is actually not as expensive as you may have thought.
Where Can You Get Cover From?
Like all insurances you can go to your bank or a comparison website but will these provide you with the best deal?
Here’s the savvy savings bit; start by shopping around. We’ve already mentioned Future Proof, that can help give you the peace of mind and protection your family need.
It does take time to shop around but that’s the only way you know you are getting the best possible price. Don’t be scared to pick up the phone and get direct quotes. Make sure you are giving completely correct information so that the quote is right.
You could also look at asking a financial advisor. Many do charge for this service but if you do not feel confident with picking up the phone then this may be an option for you. Financial advisors do come with expertise of income protection and can sometimes offer lower premiums comparison websites.
Think of it this way. We have no problem insuring our pet, the contents of our home and our car. All things we could live without and that do not provide a roof over our heads and food for our children.
For some reason we don’t even consider protecting ourselves. Should the worse happen – or not even the worse, should an illness happen or an accident – could you pay the bills? Would you be able to keep your house? If not then look into income protection insurance.