Why income cover is essential
- 4TH JULY 2007
While the majority of people never like to stop and think about “what if” it is, however, something which should be given some consideration. The majority of people have regular outgoings such as mortgage, credit card or loan repayments that have to be made each month regardless of their financial situation.
Therefore some thought should be given to what would happen if you were to lose your income and this is where income cover can be essential.
Income cover will protect you with a tax-free monthly sum of money should you find that you are unable to work if you become involuntarily unemployment, have an accident or suffer an illness which would keep you out of work for 30 days or more.
Income cover is essential for peace of mind when it comes to safeguarding your finances but depending on where you buy it, it can work out expensive. The banks and high street lenders are notorious for asking high premiums for income cover, mainly because they can. They have a stranglehold on the market place by the very fact that the majority of consumers are unaware that they can shop around for cover and buying from their lender or bank isn’t compulsory.
Simon Burgess is Managing Director of specialist provider British Insurance. British Insurance only deals in protection cover and so can help you to make the best savings on your income cover along with offering you a quality product.
While income cover is essential there has recently been a great deal of controversy regarding the product. The sector is currently under investigation by the Competition Commission and it is hoped that from this changes will occur in the sector and in particular in making sure the consumer understands the product.
