What is Income Protection? | Cross Point Financial
Income Protection is a policy you take out to protect your income in the event you are out of work due to illness or injury. These policies will pay out a tax-free amount, allowing you to cover your outgoings for the period you are out of work. Some Income Protection policies also pay out in the event of general unemployment, though not all.
An Income Protection insurance policy ensures that you can keep up with mortgage repayments and other living expenses, such as rent and bills until you return to work.
How does Income Protection insurance work?
Policies generally have a waiting period in place before they pay out. This period begins when you become unable to work. Depending on employer sick pay schemes and state benefits available to you, it can be a good idea to go for a longer waiting period, as this can lower your premium. You can rely on this until the Income Protection payments kick in.
Your Income Protection premium will depend on various factors, including your age, health, and job. It will also be dependent on the level of income you want to protect. Those with higher outgoings will need a larger amount, which means premiums will be higher.
Life can be unpredictable, and illness and injury can strike when you least expect it. With an Income Protection policy in place, you can be comfortable in the knowledge that you are protected against loss of income due to being out of work, as well as much of the stress that comes with it.
For more information, or to discuss your income protection needs, call Andy on 07976513630, or use our online contact form.