What is Income Protection Insurance?
Imagine being unable to work due to illness or injury. Without a steady income, covering essential expenses like rent, bills, and daily living costs could become challenging. Income protection insurance is designed to provide financial support during these times, helping to ease the burden while you recover.
This type of cover ensures that if you’re unable to work, you receive regular payments to support yourself and your family. Unlike government benefits, which can change over time, income protection is a reliable and long-term solution tailored to your needs.
Relying solely on employer sick pay or savings might not be enough to maintain your lifestyle. Income protection gives you peace of mind, knowing that in difficult times, you have a financial safety net in place.
How is Income Protection Different to Regular Life Insurance?
Life Insurance typically pays out a lump sum upon the policy holder’s death. However, with income protection, monthly payments from the insurer are more common.
How do this work? Well, if you were unable to work due to a serious injury or illness, the insurer will pay out. Unlike the lump sum synonymous with life insurance, income protection pays out a monthly figure.
This can aid with hospital bills, renovating your home, or simply making ends meet after the loss of an income.