Explaining income protection insurance cover
- 5TH AUGUST 2007
Income protection insurance cover can, when bought correctly, help ensure that if you should find yourself unable to work through suffering an injury from an accident; due to illness; or where you have been made involuntarily redundant, then you could still pay your essential monthly outgoings.
The income protection insurance cover will pay out for up to a period of 12 months (with some providers, they will pay out for up to 24 months’) once you have been out of work for a period of time, usually around 30 days. However, while it can be a great thing when it comes to peace of mind against the uncertain, it isn’t suitable for everyone. For example, those who are self-employed or who are retired wouldn’t benefit from having the cover.
The majority of people who find themselves unable to work don’t have the luxury of a bank balance to fall back on or can rely on their employer paying them and it is these people who could benefit from having the insurance. However it is essential that you get as much advice as possible before taking out a policy.
It is also essential to remember that you have the option of shopping around for the income protection insurance cover; high street lenders will charge a higher premium than the independent specialist provider. A standalone specialist such as the ethical British Insurance will not only be able to save you up to 80% when compared to the high street banks and lenders, but they also give professional, honest advice before you buy their products, which allows you to decide if a policy is suitable for you.
Backed by Simon Burgess who is forever campaigning for better deals for the consumer and warning of the disadvantages of buying from high street lenders, British Insurance have an excellent team on hand to advise. Simon might seem outspoken to many, however he is honest as the recent investigations into the sector have revealed with the cases of mis-sold policies.
Generally it is the high street lenders and banks who have been the main culprit in the mis-selling of income protection insurance cover policies which has given the sector a bad name. However, sold correctly, it can provide invaluable financial protection.
