Income protection will help look after you and your family if you become ill, can't work and can't provide for your family. If your income suffers, income protection or permanent health insurance will give you an income if you are unable to work.
Most income-protection policies offer monthly payments that equate to between 50% and 65% of gross salary, although some companies will offer up to 75%, less any state benefits you get. Your month payments will be based on the monthly benefit required, your age, health status, smoker status and current job. The deferment period also affects the premium, with a shorter period resulting in higher premiums being required.
If you work for yourself, income protection will be based on the level of cover on your taxable income at the point of a claim. Income protection benefits are paid tax free. You'll receive them until you can start work again or until you retire or your income protection policy reaches full term.
Income protection Pros and Cons
Income protection, or permanent health insurance, is great if you have a family who rely on your wage to pay the bills and you need the security of continuing pay outs. It can be ideal if you employment does not come with much sick pay or you are self employed, and the benefit is yours to spend each month. On the downside, income protection is fairly expensive if you have a short deferment period.
Income protection quotes
With income-protection insurance, term life insurance and critical-illness insurance, we rebate at least half of the initial commission that the provider would have paid to us back into your policy, to lower your monthly premiums.
Mortgage protection
Mortgage protection is a vital element of your mortgage needs. Your mortgage is probably the largest financial commitment you have, so protecting it is highly important. You should remember to budget for your mortgage protection it's easy to overlook these payments when you work out your borrowing requirements.
Financial advisors talk about a fully protected mortgage. A fully protected mortgage gives you protection for your mortgage against every eventuality life throws at you. The areas of mortgage protection are death; redundancy; critical illness, and long-term sickness.
Mortgage protection pros and cons
Mortgage protection is not compulsory. It might seem a bit pessimistic to think about needing mortgage protection. However, at any time, you could become ill and be without your income. That's why mortgage payment protection is so important. It's a financial safety net and, with repossessions rising fast, protecting your mortgage is vital.
A plus point of mortgage protection does not need to be expensive as the monthly payment is based on how old you are and the size of the benefit. It's important to remenber that your savings will not pay your mortgage for ever if you become ill and can't pay the mortgage. However, if you are on state benefits, mortgage protection will not be for you.
