If you happen to meet an accident or illness and lose your work or job, then Income Protection Insurance – (IPI) will offer a tax free monthly income. The amount of cover you will be allowed is generally between 50-60% of your monthly income. You can start getting this income only after a specified amount of time known as deferment period.
The deferment period of an Income protection policy is decided by the policy holders before the commencement of their insurance policy. It is said, the longer the deferment period of an income protection policy the cheaper are the premiums.
Keeping your mortgage, loan or monthly income safe is important - could you manage to keep up payments if you are off sick or lose your job?
An Income Protection Insurance policy will pay out after the deferment period and up until you return to work or until your retirement.
It is worth consulting an Independent financial advisor at this stage as with his/her experience and sound market knowledge they can get you the most suitable package as per your situation.
Contact us now to get a free Income Protection quote with no obligation.
At its highest level, there are two types of Income protection policy:
1) Short-term Income Protection policies, which are otherwise known as Accident, Sickness and Unemployment (ASU) products, will generally only pay out for one or two years;
2) Long term Income Protection, these will usually provide a regular income if you are unable to work due to illness or disability until you are well enough to return to work, or until the end of the policy term.