Compare the market for income protection insurance
When you compare the market for income protection insurance, you are making a lifeline that will protect you in the event of unexpected sick leave relating to being diagnosed with an illness or sustaining an injury. In some cases, this cover will also protect you against sudden unemployment – a problem that many of us are experiencing in this tough economic climate.
It’s important for you to consider a few key variables when you compare the market for income protection insurance, especially the length of time that you will be able to claim payments while you are off work. Typically, this can range from anywhere from a month to a year – but again, this will depend on the type of policy you go for.
Although a cash lump sum would be paid out by some income protection insurance policies if you were to develop a condition that would mean you couldn’t work again, do remember that serious illnesses that result in your death may not result in a similar pay out. Because of this, you also need to distinguish the difference between life insurance and income protection insurance.
A top tip is to always remember that honesty is the best policy, and that all of the questions you will be asked by a provider of income protection insurance need to be answered thoroughly and transparently. If you withhold vital information about your health or employment status, it could void the policy and mean that you are unable to claim back off the insurance, losing all of the contributions that you may have made already.
Although you may not be able to receive your full salary with income protection insurance, this cover is designed to ensure that all of your bills, mortgage payments and outgoings for life’s essentials will be covered – preventing the risk of you experiencing financial hardship when you already have your health to worry about.
It’s also important to ensure that your employer doesn’t offer payments while you are off sick, as this could mean taking the time to compare the market for income protection insurance is redundant.
When considering income protection insurance, you need to remember that this is generally a permanent solution to preventing the financial instability that can be caused by sickness or an injury. If you pay your premiums on a monthly basis for three years and stop making contributions, you will not be eligible to claim off the policy if an unexpected event happens a few years later.
Finally, also find out whether or not income protection insurance can offer security against redundancies, as some policies are unable to offer this feature. By using our easy-to-use website, you can get answers to all of your questions within minutes.
