There are many different reasons as to why you should take out income protection insurance, no one is secure in their jobs and most of us can not afford to maintain our life style without a job and this is why more and more people are taking out income protection insurance.
When you are out of work you will not want to sell your treasured possessions and if you are out of work due to an accident or illness it is very likely that you will not have the energy to go about selling your possessions, however without an income you need to be able to make ends meet. If you have income protection you will be able to avoid the need to sell your treasured possessions because you will receive an insurance payout. Income protection does not offer you a lump sum payout instead you will receive weekly or monthly tax free payments this enables you to continue meeting your financial commitments and you do not need to worry about managing a large sum of money. Payouts are on average 65% of your salary and when you take out your insurance you will agree a term for which you can receive payouts for example two years and after those two years have ended you would no longer receive a payout and would be expected to make your insurance payments again, however if you become well enough to work again before those two years are out then your payments will stop and you will be expected to find work and continue making your insurance payments. Your benefit period will depend on the type of insurance policy you have and in some cases it is up to your retirement age.
Income protection insurance is a way in which you can stop yourself from being in devastating circumstances for an affordable price, you can choose to pay your income protection premium annually or monthly, which ever suits you best. Income protect offers you assurance that you will be able to cover your expenditures such as mortgage/rent, utility bills and any loans you may have. Your premium will depend on your lifestyle, job, health, age and gender, if you are a heavy smoker then your premium will be much more expensive than if you did not smoke at all.
The aim of income protection insurance is to provide you with an income if you were unfortunately in the position of being unable to work due to an accident or illness.
When you take out an income protection policy you will be given a definition which determines when you are able to receive a payout from your insurance, if you receive an own occupation definition you will receive a payout from your insurance when you are unable to do your own job. If you receive a suited occupation definition you will receive a payout from your insurance when you are unable to do your own job or any job similar to your own job. If you receive an any occupation definition you will receive a payout from your insurance when you are unable to carry out any form of paid work. It is ideal to receive an own occupation definition as this makes it much easier for you to receive a payout from your insurance.
Taking out income protection insurance allows you to recover at home if you are out of work due to an accident or illness and you will not need to worry about meeting your financial commitments as your insurance payouts should be enough to cover your financial commitments leaving you with the time to focus on recovery.
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Income Protect are a well established reliable and trustworthy insurance company offering income protection insurance at affordable prices for all. They will endeavour to find you an insurance policy which suits your requirements.
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