Income Protection – doing exactly what it says on the tin.

The 2020 pandemic, the war in Ukraine and the looming recession are all reminders that we cannot predict the future. We can guess, but no one knows for sure what lies around the corner.

This is true in life, and in business and events like the pandemic have highlighted how in a mere flash, a business can fail.  For employees, this brings the risk of unemployment and with that, comes the potential of falling into debt. This is the time that income protection comes into its own.

Who should have an income protection policy?

Income protection is for everyone.  If you have regular monthly outgoings, then it’s for you. Even if you don’t have a mortgage, you’ll most likely still have bills, loan repayments and rent to pay. And income protection will cover your costs if you can’t afford to.

Insuring your income means that when you need to focus on finding your next career move, you can do so knowing that your home and lifestyle are protected.  This also means that your credit rating is also maintained positively, so obtaining credit or a mortgage in the future isn’t problematic for you.

How much does Income Protection payout?

The pay-out you’ll receive from your insurer will be substantially less than your usual wage, up to around 50-70%, but it will usually be enough to maintain your outgoings for the immediate future. If you are without work, it’s likely that you may need to make adjustments to your way of life such as shopping around to save money, reducing the number of times you eat out, reviewing your gym membership and so on.

What if I can’t afford to make my monthly premium payments?

We cannot stress enough how important it is to stay on top of payments of your policy. If you fail to do so, you will not be able to make a claim, regardless of how long you have been paying into the policy previously.

Talk to our income protection specialists here at First Mortgage Solutions today.  A member of our experienced advisers will be happy to discuss any protection queries you may have; get in touch by calling us on 01639 262222 or by clicking here.

 

*Income protection (with no investment link) has no cash in value at any time and will cease at the end of the term. If you stop paying premiums your cover may end.

 

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