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If you suddenly find yourself unable to work due to illness or injury, an income protection plan makes sure the bills are paid.
But it will also stop you having to dip into your savings, so you protect your future financial wellbeing too.
At a glance
- Income protection offers the peace of mind that your home, family and lifestyle aren’t affected if you’re unable to work because of illness or injury.
- Proper income protection also means you won’t be using tomorrow’s money to cover today’s expenses – so you protect your savings and stay on track for the future.
- Loss of earnings due to illness isn’t uncommon, so it’s worth talking to a financial adviser to see how income protection can help protect the financial wellbeing of your family.
Is it worth getting income protection?
Income protection insurance pays a regular monthly amount if you can’t work because you’re unwell, or suffer an injury that results in a loss of earnings. Knowing that, if you suddenly couldn’t work, the mortgage and bills would still be paid, can take a real weight off your shoulders, and mean you don’t need to put your future plans on hold. Many of the workforce would receive some sick pay benefit from their employer. But protecting their family, home and lifestyle if they can’t work could mean dipping into their long-term savings to keep afloat. An income protection plan isn’t just a safety net for the immediate expenses, it also protects your savings and investments. Taking out income protection insurance might mean you don’t need to put money aside in an emergency cash fund as well – so you could choose to invest that money instead in your retirement fund, or into an investment plan for your children’s education.
How income protection protects your future, as well as your present
Long-term serious conditions can force you into some difficult decisions. Without an income protection plan in place, a sudden loss of your wages could have far-reaching effects on your financial stability in the future. You may have to choose between paying the electricity bill, or school fees, or making your regular contributions to your retirement pot and investments.
How do I choose an income protection policy?
It can be tricky to work out which type of protection – and amount of cover – you need. A financial adviser can talk you through the differences between policies and check to see whether income-protection payments might affect your ability to claim state benefits – or if pre-existing conditions might affect a claim, or your eligibility for insurance.
Taking financial advice on income protection
Income protection keeps you afloat in the short-term – and on course for the long-term. To find the right income protection insurance for you , get in touch with us . You’ll be protecting the financial wellbeing of the whole family. The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
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