The Secret of Financial Security
Our personal situations and circumstances can change quickly. One day you are fit, healthy and happily working toward your future. The next day you may be unable to work due to accident or illness. Are you ready for the worst?
We are all happy to spend money on home insurance, travel insurance, insuring our belongings, our cars and our health. But what would you do to pay your bills and feed your family if you couldn’t work due to disability or illness? Statistics indicate that there is a higher chance of becoming disabled during your working years than of dying before reaching the age of 65. But still relatively few people take steps to ensure that if the worst should happen they will still have an income.
Anybody who works for around 20 hours or more per week should be able to take out an income protection insurance policy at a reasonable cost. These policies are intended to provide you with adequate income in the event that you can no longer earn a living. Income protection, in my opinion, is essential if you are the main bread winner in your house.
A good income protection policy should cover mental health issues as well as physical problems. There are policies which don’t cover mental issues or problems related to the nervous system. It is recommended that you ensure that your policy protects you from any form of disability that would prevent you from doing your work and earning a living. Ideally you should have an income protection policy that is flexible enough to support you if you are able to return to work on a part time basis.
Something else to consider with regard to income protection is what will happen if you change your job or employment. Its worth ensuring that your policy will accommodate changes in your career or employment.
We all think that the worst will not happen to us but each year 27,000 people in the UK leave employment due to ill health or injury. Make sure that your family are secure in the event that you can’t work any more.
Category: General
