If we look back two years ago, I don’t think anyone could have foreseen how our lives would change with the arrival of Covid and the lasting impact that this period has had. The biggest factor that I have taken from last two years is that life is unpredictable and can change at any moment, like many I have re-evaluated what is important to me.
We just don’t know what is around the corner, but we do take some steps to cover ourselves by using insurance, for our cars, home, valuable items and mobile telephones. However, have you ever thought about protecting your income and how you could benefit you should you be unable to work?
Should you find that you’re unable to work this could affect you in many ways for example:
These are just some of the many ways that your life could be impacted in the unfortunate event of being unable to work due to accident or sickness and would cause a lot of stress and worry.
The question that you really need to ask yourself is, should you have an accident or become sick, how long would you be able to cope financially?
Most policies have a minimum of four weeks to wait after you stop work before payments will start. However, when looking at policies you may wish to opt for a longer waiting period should you have sick pay cover from your employer, or money in savings. The premiums you pay for income protection may be cheaper should you opt for a longer waiting period.
Income protection, depending on the provider, gives you a regular income of around up to 70%, of your salary before tax until you are able to return to paid work or retire. The income that you receive from a policy is usually tax-free.
Income protection gives you the peace of mind that should you have an accident or become sick, that you will have an income, taking away that stress and worry allowing you to focus on your recovery!
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