Income Protection Insurance
Income protection is a form of insurance that will provide a monthly income to help pay the mortgage and associated costs should you be unable to work due to an accident or sickness.
It is particularly useful for people who work in manual occupations where injuries would stop you from performing your duties.
You agree to pay a monthly premium over an agreed term and if you were to die within that term the insurer pays out an agreed regular income for the remainder of the term, tax-free.
Mental health is covered with this type of policy, and this condition makes up for a large proportion of claims. You may know of someone who has been off work long term due to mental health, it can happen to anyone, so it is important you consider this protection.
Due to the current climate certain types of protection are limited, do not hesitate to get in contact with an adviser to discuss your best options regarding;
- Accident, Sickness & unemployment
- Payment protection insurance
- Mortgage payment protection
Family Income Benefit
An alternative to level term life insurance, Family Income Benefit is designed to replace the lost income if the person or persons insured die.
These policies tend to be more suitable for people with younger families who wish to protect against the loss of income if one or both parents die before the children become financially independent.
How it works
Family Income benefit will pay your dependants an annual income from the time you die till the end of the policy term. This is income is normally tax-free and can be used for any purpose. Helping to provide an income to help the family left behind to maintain their standards of living.
Critical illness cover can also be added with these policies so in the event of a serious illness is diagnosed, there would be a one-off payout to help out with finances. (see Critical Illness Cover above)
As with all protective insurance products, the monthly cost will depend on; how much cover you require, the term (length) of the policy, your age and your health.