Income protection insurance with advice from ACC Associates
One of the scariest factors you might have faced is ‘what if?’ What if you were injured or had an illness which meant you were unable to work ever again with no income protection insurance in place or other form of provision?!
Unfortunately, there are very few jobs available these days that will offer you the security of providing a guaranteed income if you are ill or unable to work for longer than 12 months due to long-term sickness or disability. Unless you have a substantial sum of money behind you then the likelihood of achieving lifetime financial security without having to worry about being in employment is practically zero. At ACC Associates our insurance advice can help you remove the necessity for you to become concerned for you and your family’s welfare should your income become affected – with the help of income protection insurance.
Feel free to call us on (01249) 599019 to start your search and take advantage of your ACC Associates broker and advisor insurance service. Continue reading to learn more about income protection insurance and the effects of losing your or your loved ones’ income.
Your potential need for income protection insurance
You can imagine the added stress and potential embarrassment of having to sell off personal and treasured items such as your car or jewellery that months or years before had been a rewarding feature of your hard work. Selling your items to help pay the mortgage and bills and then perhaps having to sell your home because you have suffered a total or partial loss of income is devastating – perhaps you know someone who has been in this unfortunate position before.
If you are unable to work, a lack of comprehensive income protection cover means you may have to rely solely on state benefits – which is unlikely to be sufficient to meet your mortgage repayments or continue to pay household bills. This is where income protection can help, as it provides a tax free monthly payment until you are able to return to work – should you reach that stage.
There are many different names that you may have heard this type of cover referred to, including Permanent Health Insurance or PHI. The actual aim of the insurance is to provide you with long-term income replacement if you were in the unfortunate position that you could not work due to illness or injury. There are many different options available to you on the market of varying quality; there are also ones specific to certain occupations.
The maximum level of cover you can buy is about half your current income, as the insurers want you to be incentivised to try and get better and back to work. But because the insurance payments are tax-free, the income you’ll receive is not far short of your net income normally. You can also choose to protect your cover against inflation. Income Protection primarily covers you against disability and sickness, but you can also opt for an additional unemployment cover too.
Don’t confuse Income Protection Insurance with the some of the different types of insurance on offer – these never pay out for longer than two years – normally it’s one year only – they are also commonly known as Mortgage Payment Protection Insurance and Accident, Sickness and Unemployment cover.
What to do next to receive income protection insurance advice
Getting the right quote and insurance is an important part of finding the right insurance for you. This is easily done – you can call us on (01249) 599019 and take advantage of your ACC Associates broker and advisor insurance service.
Payment protection insurance is optional. There are other providers of Payment Protection Insurance and other products designed to protect you against the loss of income.