Income Protection Insurance Do I Need It

Do i really need income protection insurance.

Income protection insurance do i need it. All income protection insurance policies will include a definition of what constitutes partial incapacity that is if you are still able to work but not at 100 per cent. Income protection insurance will replace a percentage of your income in the event that you re unable to work because of injury accident or illness. You could get by on your sick pay. For example if you have an employee benefits package which gives you an income for 12 months or more.

You could survive on government benefits. So provided you are completely truthful when applying for your policy your insurer will be there to support you. Premiums for both life insurance and income protection do not have to be expensive and can be tailored to your budget. How much income protection insurance do i need.

Some employers offer this as a benefit. Income protection gives you up to 75 of your normal income up to a maximum of 262 500 less any social welfare payments. For example if you earn 80 000 p a the maximum benefit payable would be 75 of your total earnings which would be 60 000 less any social welfare payments. But they might not be enough to cover all your outgoings.

However if you were off work for a longer period of time a short term policy would not cover your income when you really need it. Mortgage protection insurance is the cheapest form of insurance cover and will pay off your mortgage in the event of early death. That you don t already get income protection insurance through work. Short term policies are usually cheaper than long term cover because the insurer will only ever need to pay out an income for a limited time.

We all do everything we do in our lives requires us to maintain an income from feeding clothing the family paying the rent or mortgage or even just enjoying life. This ensures you cover your regular expenses and protect your lifestyle. Your employment contract handbook or personnel department will have details if this is the case. Formerly known as permanent health insurance income protection is an insurance policy that pays out if you re unable to work because of injury or illness.

Like all insurance products it is there to support you in your time of need and the great news is that last year almost 90 of income protection claims were paid 1. The simple answer is a resounding yes. Income protection do i need it. Under an income protection policy you ll be provided with an income generally up to 75 of your gross wages for a set period of time payable either weekly or monthly which will allow you to recover with better peace of mind.