The good and bad of income protection insurance
- 5TH AUGUST 2007
Just as with most things, there are both good and bad sides to income protection insurance. If you fit the criteria then an income protection insurance policy might be worth taking to give peace of mind. On the other hand if you rush into buying a policy blindly and don’t understand the exclusions within a policy it could one of the worst and costliest purchases you ever make.
When bought correctly and from the right source then you can’t go far wrong with income protection cover, especially if you shop around and go with an independent specialist provider for the insurance.
You not only get the cheapest quote for the premium for the insurance but can take advantage of the information an ethical provider will make sure they supply. Standalone provider British Insurance, for example, gives you all the information you could need to ensure that you make the right choice.
The high street banks and lenders are at the other end of the scale and, in most cases, will give you a quote for your income protection insurance that is well over the odds while providing you with little or no information when it comes to what is excluded within a policy.
For example, if you are a part-time worker then you wouldn’t be eligible to claim, nor if you are retired, yet the high street lender has been known to sell a policy to these people. This is something which Simon Burgess, Managing Director of British Insurance, cannot stress enough. Simon doesn’t put huge profits before the consumer but instead offers a quality product for up to 80% less when compared to the high street lender.
Overall, income protection insurance provides those in full time employment with the financial security that they will be able to meet their monthly outgoings if they become out of work due to accident, sickness or unemployment but, it is has to be bought correctly.
