Ever considered income protection insurance? If the answer’s no then you wouldn’t be in the minority – when compared to life insurance, few people understand the value of income protection. In fact, statistics on how UK households plan to cope with financial hardship show that, whilst 36% of UK households have life insurance, only 8% have income protection insurance.
Financial hardship could entail the loss of a loved one and primary contributor to the household income. Whilst this can have a dramatic and lasting effect on both you and your finances, statistics show that you are 3 times more likely to be ill for 6 months or more than to die during your working life. Therefore it seems we really should be giving income protection insurance a little more thought.
Out of employment
If you suffered an illness or injury that prevented you from doing your job, are you prepared to lose your salary? The change in circumstances can have a profound effect on household life, especially if you’re tasked with managing the finances of a whole family. Employers are only legally obliged to provide you Statutory Sick Pay of £87.55 a week for up to 28 weeks; to put this into perspective, that’s just over £350 a month, a sum many people would struggle to get by on. If out of employment then the benefits you’d receive from the government would be unlikely to cover your mortgage or rent.
Yet the fact remains, less than 10% of households have income protection in place. Considering the recent findings announced by Cancer Research UK that 1 in 2 people will develop cancer at some point in their life, the figures just don’t add up. A critical illness can have drastic effects on your lifestyle, making protection all the more important.
Peace of mind
Being unable to carry out your job or even simple day-to-day tasks can be frustrating, and if you’re unable to provide for your household then this can bring only greater stress to family life. Buying income protection insurance offers some stability, and whilst it can’t reduce the emotional impact of a situation like this, it will at least provide some peace of mind for whatever’s ahead.
Online income protection quotes
When you consider how easy it is to buy insurance online then it makes it even harder to believe that so many people don’t have protection in place. The internet makes retrieving and comparing online income protection quotes simple and hassle-free, and with the range of prices before you then you’ll be well-placed to find an affordable option. It’s important to do a little research to find the best deal for you, and discount brokers can be a good option for many customers.
Discount brokers are much like your typical broker, offering a great range of insurance products from a reliable panel of providers. However, where they’re different is in the way they charge you – typical brokers will take commission on your policy, meaning they’ll be taking that little bit of your hard-earned cash every month. This can amount to hundreds of pounds when considering the length of typical income protection policies, but discount brokers charge just a small one-off fee for setting up your insurance, often as little as £20. They then rebate you all commission to ensure you get the cheapest deal possible.
Take Best Price Financial Services for example: their online income protection quotes are some of the most competitive around. What’s more, they come from some of the best insurance providers – the ones that you can trust to provide great cover at an affordable price and, most crucially, pay out when you need it. They offer quotes from providers such as Aviva, Zurich and Friends Life. The latter of these three paid out an average of £860 a month per claim in 2013, and accepted 85% of all claims received. 10% of claims were not accepted due to inaccuracies in the medical definition given by the insured person at the start of the policy, foregrounding the importance to reveal any existing health issues – honesty is the best policy. Being honest when filling in your form will mean you can be sure that your claim will be accepted when it matters.
Take time to gather income protection quotes, to compare prices and to take note of the individual features offered by each option. Your cover will vary between providers, and it’s important to be sure that you’re happy with everything on offer. Taking out the policy is quick – fill in a form, or submit your details by post, and you’ll feel that weight lifted from your shoulders. There are few better feelings than knowing that your finances, and family, are safeguarded, and with online income protection quotes just a click away, it couldn’t be easier. See our Income Protection page and begin this process today.