Income protection cover is an insurance policy that pays out if you are unable to work because of illness or injury. It is possibly one of the most important insurance policies we can buy and yet it is often last on the list. Is this an insurance policy you should consider?
Does income cover suitable for everyone?
The Association of British Insurers Key Facts Report 2017 shows a staggering £160 million is paid out to customers every day in the UK. £12.5 million was paid out in critical illness cover and similar insurance, including income protection.
Of course, whether an insurance product is right for you depends on a number of factors, including your circumstances. Many people are under the impression that income cover is for older people, but there is evidence to show that the average age to claim is just 33.
Why don’t younger people consider income cover protection?
There are many insurance products on the market and for younger people, income protection has traditionally not figured high on the list of insurance priorities.
Long sickness leave from work due to injury or illness is seen as something that affects the older age group. But as @YourMoneyAdvice points out, over a million workers a year find themselves taking an enforced leave of absence from work due to injury or illness, presenting significant financial hardship for many.
As well as age, many people also believe that income protection cover is only valid for people with dependants, be that children or older relatives. But we all have bills to pay, whether you enjoy the comforts of a bachelor pad or a busy family home.
With more under-35s willing to insure their mobile phone than their income, it is clear there is a growing need to open the discussion around income cover with everyone.
Claims data shows the range and frequency of claims made under income protection cover for certain injuries and illnesses. Fractured or broken bones, along with spinal conditions and musculoskeletal problems, were the key reasons to claim in nearly 4 out of 10 cases.
Mental health cases showed a rise for a third year in a row – a sign of how seriously mental health issues are now being considered by employees, employers and the health profession too.
Why consider income cover
There are many reasons why investing in income cover insurance could bring peace of mind:
– The younger you are, the cheaper the insurance is likely to be.
– Some insurance policies apply to your current role and will need updating if you change jobs, whilst others cover a range of career choices.
– Check what cover is offered by your employer so you buy a product with the right lead-in time and other benefits.
– Check the waiting period for when the policy kicks in – in the case of long-term illness or injury, for example, you may have to wait several weeks before you receive any payment.
– If you are self-employed, make sure you opt for a policy that is specifically geared toward your circumstances.
Don’t wait to sort income cover – contact us for information on income protection insurance today!
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Written by: Cambridge Web Marketing