Income protection could provide a lifeline should you suffer an accident or illness
Income protection insurance is an important protection product for most people as it is designed to provide protection in the event of a loss of income caused by a long-term illness or injury.
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.
How Does the Policy Work
If you are unable to work due to long-term illness or injury, your income protection insurance policy will pay out a tax free monthly income to help compensate for your loss of earnings. The maximum amount of benefit you can receive is based on a percentage of your gross earnings (usually around 50% of your pre-tax income). These monthly payments will continue until you are fit enough to return to work or until the end of the policy term if you do not recover.
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.
Most of us live from one payday to the next and we need this regular income to cover monthly commitments. Even those who have savings could encounter financial hardship if they lose these regular payments for more than a couple of months.
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.
speak with an expert
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.
An Income Protection Insurance can be tailored to suit your individual needs. For example, it is possible to alter the period before the policy starts to pay out (known as the deferment period), how much the benefits are and how long they last. Your premiums will vary based on these factors, so you need professional advice to ensure that the policy provides the cover you require at a price you can afford.
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.