What is it?
An Income Protection plan is designed to pay out a regular income in the event you are unable to work due to an accident or illness. These types of plans continue to pay out an income as long as you are unable to return to work up until the end date of the policy (typically your normal retirement age).
This type of plan is quite often seen as the foundation of any financial planning as it is likely that other plans will have to be given up if you do not have sufficient income coming into the household.
Who is it for?
This type of plan is designed for anyone whom is working (employed or self employed). It's worth pointing out that even if your employer provides sick pay, it is unlikely to last for longer than twelve months and so ongoing protection is important to consider. Plans can be adapted to fit in with existing protection you might have. At ADH Mortgage Services we can help you find the plan that best meets your requirements.
Income Protection Insurance offers various options to suit your individual needs. For example, it is possible to alter the period before the policy starts to pay out (known as the deferment period), how much the benefits are and how long they last. Your premiums will vary based on these factors, so professional advice will ensure that the policy provides the cover you require at a price you can afford.
Do you need protection insurance?
Each year one million people in the UK find themselves unable to work due to a serious illness or injury (ABI 2017). Income protection insurance is designed to give you some cover if you can't earn an income through accident or illness. If something happened to you would you be able to survive on savings, or on sick pay from work? If not, you'll need some other way to keep paying the bills and you might want to consider income protection insurance.