WHAT IF YOU LOST YOUR INCOME?
I understand that it can often be seen as unaffordable, expensive and complex to protect your income.
Being unable to work due to long term illness or injury is a frightening prospect.
If you suddenly lost your income today due to an accident or long-term illness what would be the impact on your life? How long could you survive financially?
People often think that ‘it won’t happen to me.’ However, in a recent survey by Legal and General they found that 1 in 3 people know someone who’s had a long term absence in the previous 12 months. Unfortunately long-term absences from work are not uncommon and Income protection could help you maintain your lifestyle should an illness or accident keep you from working.
When you’re coping with an illness or injury, having money coming in regularly can give you peace of mind. An Income Protection Benefit Plan does that, with regular monthly payments.
How does and income protection plan work?
Income Protection Plans can be flexible, with a range of different features and benefits that you can choose from, each one can affect your monthly payment.
The monthly benefit you would need and when you need to receive it is based on a few factors, including:
- Your income
- What benefits your employer may provide
- How long these benefits might last
- When you would need the benefit to start paying you
- How many years you would like to have income protection.
Your monthly benefit payments are paid to you after a set length of time called the the deferred period which you choose from outset. When you apply, you can choose between 4, 13, 26 or 52 weeks to wait before claiming. Your benefit payments are made a month after deferred period.
Can other types of protection cover you?
The best solution is to work with your adviser to weigh up what suits you. However, it’s best to know that not all protection products are the same, income protection is different to critical illness cover and life insurance. For instance, these products usually pay a lump sum, and only if you suffer a critical illness or die. An Income Protection Benefit Plan pays you a regular benefit if you can’t work due to long term illness or injury.
What to do next.
If you would like to review your personal circumstances then please get in touch for a no obligation initial appointment and/or a free illustration of the costs to you.
All the best Claire
Please remembeer if you need help or advice with your Investment planning please do not hesitate to contact me Claire Blake on 07704311021
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