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Income Protection

Income Protection

For many people, it definitely pays to take out income protection insurance and protect their salary. Ask yourself the simple question: how would you manage if you found you couldn’t work for several months or more through injury or illness?

According to the ABI, one million workers a year find themselves unable to work due to a serious illness or injury. It doesn’t matter whether or not you have children or other dependants – if illness would mean you couldn’t pay the bills, you should consider income protection insurance. You’re most likely to need it if you’re self-employed or employed and you don’t have sick pay to fall back on.

Income protection insurance (IPI) will provide you with a tax-free income if you are unable to work as a result of an accident or illness.

The pay outs are a maximum percentage of your earnings (usually 50-60%) and will begin after you have been off work for a certain period of time (usually called the ‘deferred period’). This period varies and you can choose whether to have a shorter or longer period before you start receiving pay outs, depending on your situation.

You will continue to receive pay outs until you can return to work, or until the end of the policy term (usually retirement).

The insurance covers a wide range of different causes which could stop you from working. They include conditions like mental illness and chronic conditions like cancer or heart disease, among others. Essentially, IPI can provide peace of mind and offer security at times when money will be tight.




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