Our personal circumstances can change in the blink of an eye. One day you are fit, healthy, happy and working. The next day you may be unable to work due to accident or illness. Are you ready for the worst?
We are all happy to spend money on home insurance, travel insurance, insuring our belongings, our cars and our health. How would you pay your bills and look after your family if you couldn’t work due to illness? There are statistics which show that there is more chance of becoming disabled before reaching the age of 65 than of dying. But many people stil don’t take out insurance policies that would protect their incomes.
Anybody who works for around 20 hours or more per week should be able to take out an income protection insurance policy at a reasonable cost. These policies will give you a percentage of your current income if you can no longer work. Income protection, in my opinion, is essential if you are the main bread winner in your house.
It is worth noting that an income protection policy should cover mental disorders as well as physical incapacity. Some policies exclude mental illness and issues related to the nervous system. It is recommended that you ensure that your policy protects you from any form of disability that would prevent you from doing your work and earning a living. Its worth ensuring that your income protection policy is flexible enough to support you if you are able to return to work on a part time basis.
Another aspect of income protection that should be checked is what will happen if you change roles or employment. Be certain to ensure that your policy will allow you to change your job or employer.
Everybody thinks that the worst will not happen to them but 27,000 people each year leave employment due to ill health or injury and never return. You need to make certain that your family are protected if you are suddenly unable to work.