Are you and your loved ones financially protected if your income were to stop?
We have a team of Dartford based Mortgage & Insurance Advisers and we are passionate about making sure that you and your loved ones are financially protected if your income was to stop. Income Protection Insurance shouldn’t be considered as an option but an absolute necessity, it is not as expensive as you might think and having the right amount of cover is essential.
We work with a whole of market income protection insurance adviser and broker; this means we can search the whole insurance market to get you the most cover for the best price.
You do not pay us a fee to arrange, advice and support your lncome Protection Insurance, as we are paid by the different insurance companies.
Our aim is to get you the most cover at the best price.
- Access to the whole life insurance market
- Competitive life insurance quotes
- Dedicated support by an experienced Client Fulfilment Agent
- Virtual and Mobile Friendly
Do you need income protection insurance?
Most people would highly benefit from Income Protection Insurance, because nobody has any guarantees or control over unforeseen life events like sickness, loss of income and accident. Not having your financial foundation covered can have devastating effects on your future plans, aspirations, desires and dreams for yourself or your family members.
- Seriously illness
If the money were to stop or significantly reduce in your household, it can have shocking effects, so you need to ensure that your children, wife or husband are safe and financially taken care of should something happen to your income.
Mortgage or rental payment is one of the main cost for most families, either you own a property or lives in a rental property, you need to know that your loved ones will always have a roof over their heads, even if you have accident or if you are too ill to make the monthly outgoings. Having a Income Protection Insurance cover in place removes all financial burden at an extremely difficult time.
Arranging your Income Protection Insurance cover may be complex and loaded with jargons, because there are a variation of Income Protection cover available and it’s hard to know which ones will benefit you and which ones are not a proper fit to your circumstances.
We do things differently; we ensure we provide you jargon-free financial education to help you understand what you need and how it meets your goals and objective. Work with Dartford based insurance broker with a team of advisers who are willing to take the time to explain the different options available to you and your situation.
How does income protection insurance work?
Income protection insurance is a policy that runs either short-term or long-term and aims to assist you with your finances if you are unable to work due to illness or injury. It ensures you will receive regular salary payments until you can return to work or you retire.
- It replaces a portion of income – usually about 65% of your earned income
- It provides regular payments until you start working again, retire, or die.
- There is a waiting period before payments – when you set up a policy there is a waiting period (also known as deferred period)
- The longer the deferred period, the cheaper the income insurance policy will be, as part of proper financial planning, it is advisable to have emergency funds set aside to cover initial period of loss or inability to earn income
- It covers most illnesses that would cause you to be out of work for a significant stretch of time
- You can claim more than once – During the policy you will be able to claim for income support as many times as you need to.
- Income protection insurance is different to other types that will pay you a lump sum of money, and it is important to do your research and choose a reliable and qualified Protection Specialist to help you find the best policy.
What are the factors that affect the cost of Income Protection Insurance?
Income protection insurance can be surprisingly affordable. There are a few considerations that determines the cost of getting income protection policy, they may include;
Applicant’s age – usually the younger you are the cheaper the policy. The best time to get the cheapest policy was yesterday.
Smoking Status – A smoker will pay more for the same level of insurance
Cover Amount – and how much cover you require to cover your income.
Term / Duration – The number of years policy will be active. Term insurance also means there is an expiry date when there will be no effective policy an longer. The longer the term of cover, the more expensive the policy. You will be able to choose the age that you will get the monthly payment until. Most people will choose it to be paid until their retirement age. Most income protection will stop at age 65 years but there are some that will go further.
Short-Term Income Protection – the idea of this type of income protection insurance is to pay for a pre-selected period in the event of becoming too unwell to work. This could be 1yearpayout period would usually be 1 or 2 years in order to keep the cost down.
Long-Term Income Protection – the idea of this type of income protection insurance is to potentially pay regular income for the entire period of a claim or until the policy expires.
Deferred Period – this is the waiting period before you start receiving the payout. People may opt for a policy that starts paying out immediately or after a month and sometimes people choose to wait 6 – 12 months before they start receiving the payout. It is important to match this to other factors like emergency funds, employer sick pay period or the budget of the client.
Medical Status – your current health status and historic medical report will play a significant role in determine the monthly premium. The healthier the more affordable the policy will cost.
Should self-employed people protect their income?
Self-employment has no privileges like employer’s sick pay which makes you more susceptible to risk of loss or income due to sickness or accident. Without the right financial foundation, a self-employed family situation can go terribly wrong quickly.
In simple terms, inability to work as self-employed means no income. It’s very important to have income protection insurance for times like these because it gives the policyholder peace of mind and a safety net if you are unable to perform your duties as a self-employed worker. You can stay financially stable and support your family. It is essential that we all have income protection insurance in case we ever need to pay bills without a job.
Do I really need income protection insurance?
If you want to be confident that you are financially covered no matter your health, you need to take out an income protection insurance policy. Plenty individuals become sick every year and unfit to work, and what might happen in case you were unexpectedly placed into this unforeseen situation? Having the option to take care of your bills and backing your family without stress is important, and that is the thing that this sort of protection can accomplish for you.
However, there are some situations where you may not need income protection. These reasons may include:
- Your have generous sick pay– some companies pay good sick pay to their employees, so you may be able to get on just fine with this, even over a long period of time
- You can use government benefits– you may be able to survive with only government benefits, if your partner can manage most of the bills. Although government sickness pay is very small (about
- You have savings– If you have saved up a lot of money throughout the years, you could have savings fund to dip into during the time you are out of work
- You can retire– you might consider taking an early retirement if you are reaching retirement age, instead of worrying about money
- You have family support – If you have a partner or family who earn enough money to support you, you don’t need to take out income protection insurance
Income protection insurance can be a commodity you may never have to use, but if you do find yourself in a difficult situation, it is an important policy to have access to.