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The Benefits of Income Protection Insurance

Income protection insurance can provide a regular monthly income in the short-term if you’re unable to work due to illness or injury, and depending on your policy, if you are made redundant or otherwise becoem unemployed. It’s designed to help you financially so that you can continue to meet your financial commitments, such as paying your bills and maintaining your lifestyle, even if you’re not able to work.

Mother and daughter sheltering under an umbrella on a sunny and rainy day.

Income protection insurance is often not considered until it is too late, but it could be the difference between financial disaster and financial stability should the worst happen. Here are just some of the benefits of income protection insurance.

Reduced Reliance on Savings
Many people do not have sifficient savings put aside in case of loss of income, but even if you do and you’re unable to work due to illness or injury, you’ll likely still have bills to pay and other financial commitments to meet which could mean that any savings you have manages to accumulate could get used up quickly. This can be difficult situation to manage if you’re not receiving any form of additional income. With income protection insurance, you can receive a regular monthly income as the result of a successful claim, meaning you may not have to rely on money put aside as savings, or access to Benefits.

Protection for Your Family
If your job is the main source of income in your household, it’s important to have a financial safety net for your family should you become ill or injured. With a successful income protection insurance claim, you can get a monthly amount in the short term to help support your family financially if you’re unable to work.

Peace of Mind
The thought of not being able to work due to illness or injury can be very stressful. Income protection insurance can provide you with the peace of mind of knowing that you’ll still have an income as a result of a successful claim if you’re unable to work.

Income protection insurance is a flexible product. You can choose the level of cover you need, whether that is Accident, Sickness and Unemplyment, or Accident and Sickness only, as well as the monthly benefit amount (monthly payout in the event of a successful claim) that you require in order to help meet any financial commitments you may have.

Income protection insurance is an affordable type of insurance. Premiums are usually calculated based on your age, occupation, and level of cover you need. This means that it’s usually a cost-effective way to protect yourself against the financial risks of not being able to work.

In summary, income protection insurance is a valuable type of insurance that can provide financial security if you’re unable to work due to illness or injury. It’s a flexible, affordable product that can provide you and your family with peace of mind.