Income protection could provide a lifeline should you suffer an accident or illness
Income protection insurance is an essential protection product for many. It offers financial security in the event of a long-term illness or injury that results in a loss of income.
Income protection insurance provides regular payments that replace part of your income if you’re unable to work due to illness or an accident.
It’s not the same as critical illness insurance, which pays out a one-off lump sum if you have a specific serious illness.
Our expert advisors are on hand to discuss your income protection insurance options in Birmingham.
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How Does the Policy Work?
In the event that long-term illness or injury prevents you from working, your income protection insurance policy ensures you receive a tax-free monthly income to cover your lost wages. The maximum benefit amount you can receive is based on a percentage of your gross salary and is typically around 50% of your earnings before tax. The payments will continue until you are able to resume work or until the policy ends if you have not recovered.
Whilst the policy is in force, it can be claimed as many times as you need to.
There is often a pre-agreed waiting (“deferred”) period before the payments start. The most common waiting periods are 4, 13, 26 weeks and a year. The longer you wait, the lower the monthly premiums.
Many of us rely on our regular paychecks to meet monthly expenses, and this regular income is necessary to cover monthly financial commitments. Even those with savings may struggle if they miss several months of regular payments.
Our specialist advisors based in Birmingham will be able to go through exactly what you need from your income protection policy and start the process to put the correct cover in place for your peace of mind.
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As an employee, if you become ill, your employer may continue paying your full salary for a few weeks or months. However, after this period ends, you would probably need to rely on state benefits, which is when significant financial challenges can start. This is an instance where Income Protection Insurance becomes essential.
If you are an employee and you fall ill, your employer might pay you your full pay for a few weeks or months. After that, you would probably have to rely on state benefits and this is often when the real financial problems start. This is where Income Protection Insurance comes in.
Income Protection Insurance can be customised to fit your unique needs. You can adjust the deferment period (which is the time before the policy starts paying out), the amount of benefits, and the duration of payments. Premiums will vary based on these choices, so professional advice is essential to ensure the policy offers the necessary coverage at an affordable price.
Income protection plans have no investment element, have no cash in value at any time and will cease at the end of the term. If you stop paying your premiums your cover may end.
For information and advice you can trust; you can obtain a no obligation income insurance protection quote by contacting us.
If you have a family, you may wish to consider combining Income Protection insurance with Family Income Benefit in order to provide your family with a more comprehensive protection solution.
Why trust RM Mortgages Solutions?
We understand that each client’s situation is different, so we work hard to ensure that each protection package is tailored specifically to your requirements. We always provide impartial advice and unbiased opinions – allowing our clients complete peace of mind when making important financial decisions.
To discover what RM Mortgage Solutions can do for you, get in touch with our specialist advisors today.
