Most people take their health and wellbeing for granted, and do not stop to consider what they would do financially if they fell ill or were injured in an accident that left them unable to work for a period of time. However many people would have major financial problems if this set of circumstances occurred to them.
This is where income protection insurance comes in. It is designed to provide a payout to you if you are injured or become unable to work through illness. It is available in both short and long term options. This means you can decide how much benefit you want to receive from your insurance if you should need to claim on it.
How much would the premiums be for this type of policy?
This isn’t a cheap life insurance policy, but it does work in much the same way with regard to paying monthly premiums. Your policy will provide the details of the payout you could get if you do fall ill, so make sure you read the details before accepting the policy. You will pay a monthly premium and as long as you keep up those premiums you will be entitled to claim under the terms of the policy should you need to do so.
The premiums will vary depending on the terms of the policy and whether it is a short term or long term one. This relates to the amount of time you would receive payouts for if you did need to make a claim. For example some policies will provide you with a payout even when you do manage to return to work, if this occurs in a limited capacity. For instance you would receive a smaller payout alongside your smaller salary for reduced hours.
Many people decide to get income protection insurance to provide them with the peace of mind of not needing to worry about bills if they should fall ill. It is wise to protect the income of the main breadwinner in the home, but you can take out a policy against either or both people in a couple if need be.