Searching for a way to secure your family’s financial future? With an income protection policy by your side, you can ensure that you don’t have to dip into your rainy day finds if you were to fall ill. Deciding whether or not you and your family should invest in an income protection policy can seem like a difficult task, but with the right know-how and guidance, you will be able to choose a policy that suits both your needs and your family’s for the years ahead. Let’s take a look at some of the most frequently asked questions when presented with an income protection policy to make sure you’re free from worry when finding the right policy for your family.
Why do I need an income protection policy?
Having an income protection policy is a bit of a no brainer. If you’ve ever had to wonder about how you’d manage to pay the bills if sickness, injury or redundancy was to stop you or your partner from working, then this policy is the answer. The uncertainty of the future isn’t nice to think about, but it’s important to consider an income protection policy if you have children or financial commitments such as a mortgage or rent. Any savings that you may have would quickly disappear if you had to start using them to cover your monthly outgoings such as food shopping, bills and travel costs.
What types of cover are available?
When it comes to selecting an income protection policy, there are two main types that you can choose from. The first is called permanent health insurance or PHI, which isn’t to be confused with private health insurance which covers medical costs. PHI policies allow you to protect a portion of your income, often 50% of your gross salary, in the event of illness or an accident. This type of income protection policy pays out until you return to work or reach retirement age.
The second type of income protection policy is referred to as accident, sickness and unemployment cover, also known as ASU. In the event or illness, an accident or job loss, this type of income protection policy will allow you to protect the payments on your mortgage or rent, plus any other debts as well as allowing access to some extra income. This type of policy generally will replace 50/60% of your gross income for 1 to 2 years. Speaking to an experienced independent health insurance adviser about your income protection policy options will ensure that you have the right policy for you and your family’s requirements.
Will having an income protection policy affect my sick pay?
Having an income protection policy won’t affect your sick pay. In simple terms, an income protection policy is designed to take over when your sick pay ends. If you were to fall ill, some employers will still pay your salary for a set period of time, sometimes for up to 12 months. The longer that you receive a paid salary, the longer you can make your deferment period, the lower the premium. Many income protection policies won’t payout if you’re still earning a salary. If you’re self-employed, you won’t have employee benefits, so taking out an income protection policy is something very much worth considering.
How can I find the perfect policy?
Finding the perfect income protection policy can take a lot of time and effort to compare all of the individual policies available. There are also many factors that can affect the cost of your income protection insurance policy. Your age, gender, health, job, hobbies and lifestyle are all factors that are taken into account when it comes to the price you pay for your income protection policy. To find an income protection insurance policy that is best suited to you and your loved ones, you should seek the guidance of an experienced independent health insurance adviser. At Protectus Healthcare, we navigate the market to pinpoint the best income protection policy which will benefit you in the long run, saving you and your family time, money and alleviating any concerns for the future.
At Protectus, we stay by your side from your first enquiry to your final policy to ensure that you and your family have everything you need to stay safe and secure for the years to come. Get in touch for income protection advice that covers all bases.