Income
Protection
Have you ever considered how you would pay your
monthly mortgage and other bills if you suddenly
could not work for several months due to unforeseen
circumstances?
This
is where income protection comes in very useful.
Income protection plans offer to cover a percentage
of your lost income for the period of time you
cannot work, allowing you to still make those
important bill payments and not worry about defaulting
against your credit providers. The cost of income
protection can vary widely depending on your profession,
and of course your salary. The higher your salary,
generally the higher the cost of the insurance
will be, simply because if you ever did need to
claim, it would be relative to your earnings and
therefore the policy is priced accordingly.
When
considering income protection, you should look
very carefully at the policy to see exactly what
you are covered for, the amount of money that
will be paid over to you in the event of a claim,
and for how many months the income protection
provider will continue to pay out for. You certainly
do not want any nasty surprises when you are already
dealing with the other issues that have resulted
in your claim in the first place.
