Introduction - If a major life event (such as unemployment, a serious illness, injury or death) prevents you from working, the consequences can be devastating. For most households, personal savings would be wiped out rapidly if the main breadwinner was no longer earning. Government benefits - even if you're eligible - are unlikely to be sufficient to meet financial commitments. The result can be losing a home, being unable to keep up with payments on a car or other vehicle and the repossession of property. You can take steps to prevent this from happening by taking out income protection life insurance.
Proactive Protection- Income protection insurance is a type of insurance product that can help protect you and your household in the event that a breadwinner is no longer able to take care of them. Instead of paying out a lump sum in the event that the policy holder is incapacitated or dies, this kind of policy typically pays the recipients a certain amount monthly, protecting them from the worst financial effects of this difficult situation.
Types of Income Protection - There are three main types of income protection available. Unemployment cover will take care of your financial obligations if you lose your job, while incapacity cover pays out in the event that you can no longer work due to ill-health or death. Unemployment and incapacity cover is the most comprehensive, protecting the policy holder in either scenario Life insurance quotes will vary depending on the amount of coverage.
Levels of Protection, Research Life Insurance Plan - The maximum level of protection that you can obtain will typically be around half of your current income, partly because insurers hope that you will be motivated to return to work as soon as you possibly can. There's usually a time limit as well; it's normal for plans of this type to make payments for a year. This might seem all too brief, especially if the incapacity is permanent or a death has occurred; however, it does buy time so that your household can adapt to their new circumstances, perhaps by taking steps to downsize, retraining for a new career or having one of the other adults in the household return to work.
Finding an affordable Policy - Cheap life insurance is something of a rarity. Income protection plans in particular are often very expensive, as the insurance company is faced with a large bill in the event that the policy matures. Although companies are now much more careful about selling income protection policies following a PPI mis-selling scandal, you still need to shop around and stay on your toes if you want to get the best deal while still making sure that you're properly covered. There are plenty of websites that will allow you to seek life insurance quotes online. Comparison shopping sites aimed at helping consumers find cheap life insurance can be particularly useful as these enable you to look at different companies' products side by side. You can also obtain information from independent financial advisers.
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