Income Protection is also known as Permanent Health Insurance provides you with a replacement income if you cannot work as a result of an illness or injury after a certain period of time.
Statistics show that a 30-year-old person is more likely to be off work due to illness or injury for a long period than to die before they reach the age of 65. If you had to give up work due to illness or injury, you would still have to pay your regular bills, such as mortgage and loan repayments and household expenses.
- Your income is possibly the biggest financial asset you have.
- Do you consider insuring it?
- Many employment contracts only provide for sick pay for a short duration.
Who needs this type of Protection?
- The self-employed with no other source of income. Remember, if you are self-employed you may not be entitled to anything from the government.
- Those with little sick pay from their employer
- Those whose sick pay only lasts for a certain length of time
- Those with dependents who rely on their income
Other important points:
- Up to 75% of your income in the event of you being off work due to illness/injury.
- The income is paid monthly no different to a salary
- It is paid for the duration of the illness
- It cessation date normally coincides with a normal pension age 60 or 65
- The premium is can be fixed or can allow for inflation as can the benefit.
- It perhaps is the most valuable cover you can buy
Watch video below and listen to the impact of having income protection cover in place.