Do you need income protection insurance?
It’s easy to get caught up in the excitement of purchasing a home, with our only thoughts for the future focusing on how we’re going to redecorate.
But while planning your home’s future, it’s important to look after your finances too, in the form of income protection insurance. If you were to suffer an injury, mental health issues or be diagnosed with cancer, it’s likely you’d be left unable to work.
Unfortunately, sick pay can only go so far, and with an uncertainty of when you may return to work (if at all), how would you and your family cope? Many of us these days are self-employed or have no sick pay benefits and would struggle sooner than we think to pay for food, bills, rent or mortgage payments.
What can income protection insurance help with?
If your monthly income were to suffer due to an injury or illness, income protection insurance would replace your monthly income when you’re unable to work. The policy can be tailored to fit around your work benefits and usually pays out for as long as the policy is in force or until you’re able to return to work.
Once you’re back on your feet, you can pick up where you left off – but in the meantime, you can rest assured that you and your family are able to continue paying bills, mortgage repayments and other outgoings.
Avoid money worries
Income protection insurance provides regular payments that replace part of your income if you’re unable to work due to illness or an accident. It will continue to pay out until you can start working again – or until you retire, die or reach the end of the policy term
Protect yourself, your home and your family
Depending on the level of savings you may have, a loss of income can soon leave you unable to pay essential household bills, such as mortgage repayments and utility bills. Income protection insurance gives you the peach of mine that you’ll be able to continue paying for your home, your family and everything in between.
Is it worth having critical illness cover as well?
When you’ve already got the financial commitment of a mortgage and other outgoings, it’s easy to think that critical illness cover isn’t worth the extra cost – especially if you’re in good health. But just think for a moment, what if you suffered a life-threatening illness such as cancer, a stroke or even a heart attack? Once your sick pay has come to a halt, it can be a huge worry during an already stressful time trying to pay the bills.
While you have tests, wait for results and undergo treatment, having the peace of mind to know that your finances are taken care of can be a weight off your mind. Here at Strive Mortgages, as your mortgage broker in Brighton and Hove, we’re on hand to answer all of your questions and help you secure the best possible cover according to your needs.
Income protection insurance information
How does income protection cover work?
Income protection insurance pays you a regular income if you can’t work due to sickness or injury and continues until you return to paid work or you retire.
Is income protection insurance the same as critical illness cover?
Critical Illness Cover is a type of insurance that purely covers a set selection of insurer-defined critical illnesses. It doesn’t provide you with an income but instead pays out a lump sum.
Do I have to go to a mortgage broker for income protection insurance?
While you don’t have to go through a mortgage broker in Brighton for income protection insurance, it can certainly help you gain access to different insurers while submitting your mortgage application. As a mortgage broker in Brighton and Hove, Strive Mortgages is well-placed to help you achieve the best possible cover – according to your circumstances.
How much does income protection insurance cost?
Income protection insurance costs will vary depending on a number of factors. Some of these you can change, such as the level of coverage you want, while others will depend on your personal circumstances.
You can adjust the cost of your insurance premiums by negotiating your deferred period (how long you have to be incapacitated before you can make a claim) and your premium type.