INCOME PROTECTION
WHAT IS INCOME PROTECTION?
Income Protection (IP) is a type of cover that can replace your monthly income for a specified term, if you were to fall ill and unable to do your job. This is a cover Tom is most passionate about as even if you didn't have a mortgage to pay you still have household bills and therefore a necessity for income. The cover will pay out up to a certain percentage of your income up until the end of a desired term or usually designed around your selected retirement age.
ACCIDENT, SICKNESS AND UNEMPLOYMENT COVER
Accident, sickness and unemployment insurance is a short term income protection policy that replaces your income for up to 12 months, should you be unable to work due to accident, sickness or involuntary redundancy. Unemployment protection insurance can also be brought as a standalone product, as can accident and sickness protection.
WHY WOULD I NEED THIS?
If today your income was gone, what would be your main concern? What impact do you think that could have on you and your family. Falling ill to the point you are unable to go to work can be emotionally distressing, let alone the financial stress and impact it can have. You may be the main income earner or a significant party to the household bills. This cover will take the stress away from illness and allow you to focus on more important things in life, mainly your recovery.
IS IT EXPENSIVE?
You will complete a budgeting exercise with Tom to ascertain your disposable income and determine what you want to afford. He will make sure you are comfortable with what you are spending. Tom would have already recorded what sick pay your employer may give you as this is typically used to ensure you are covered when you need it.
In an ideal world we want to protect everything but realistically Tom wants to make sure you are comfortable with any payments you need to pay. To do this Tom will assess three main expenditure areas; your Total Expenditure, your Essential Costs and your Survival Costs. This is simply to make sure that if the full cover is too expensive he can show you other options and other costs so you feel comfortable maintaining such an important policy.
As with all insurance policies, conditions and exclusions will apply.