Do You Need Income Protection?

Do you need income protection?

Would you be able to survive on your savings if you suddenly could not longer work? For the majority of people, the answer is no. That’s where income protection insurance comes in.

According to ABI, one million people in the UK become unable to work due to serious illness or injury each year. Income protection cover offers monthly payments in the event that you are unable to work, acting as a replacement for any lost wages. 

What is income protection insurance?

In short, income protection is a long-term insurance policy designed to help keep you afloat should you be unable to work. It pays out part of your income each month until you are able to start working again, you die, or the policy ends. 

There are often waiting periods before payments start. These can often be changed when setting up the policy to best cater for your needs, but usually, it is set up to start after any sick pay you receive ends. You can also claim as many times as you need before the policy term ends.

Who may need it?

While everyone’s circumstances are different, you may need income protection insurance if any of these sound like you.

  • Self employed people may need cover as they have no employer to rely on for sick pay.
  • If your employer doesn’t offer very good benefits or sick pay, you may need a policy to supplement any help you do receive.
  • If you have any dependants, you may need protection to ensure they are provided for should something happen to you.

How much does it cost?

Like any insurance, there are a lot of factors which affect the price of income protection. These include:

  • The type and term of policy you choose
  • Your age
  • Your occupation
  • Your health and smoker status
  • The percentage of your income you’d like to cover

If you think income protection insurance might be valuable to you and your family, give TopQuote a call on 0161 233 3110 to discuss your options. 

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