Is Income Protection Insurance Worth It?

In this article, we’re listing the circumstances where income protection is definitely worth it and when you might not need it.

Income insurance is for people who are employed or self-employed. If you’re paying for the insurance, you’ll want to know that it’s worth the expense.

How does it work?

Long-term income protection insurance is designed to cover you for a lifetime. If you fall ill or sustain an injury which forces you to take time off work, then you can use the insurance to cover lost earnings during this time. As long as your specific illness or injury is covered by your policy, then you will be covered.

This type of insurance does NOT cover loss of income due to redundancy, demotion or getting fired.

• You have bills to pay and mouths to feed

From mortgages to rent payments, if you have lots of financial responsibility and sick pay wouldn’t cover your back, then income protection insurance is definitely worth it. This is especially true if you have a family and wouldn’t be able to pay for all your bills and necessities should you need to take time off work.

• Maintain financial independence

If you were to find yourself unexpectedly unemployed due to illness or injury, you may still want to maintain financial independence, even if you know family or friends would support you through a rough patch. Instead, income protection allows you to get yourself through an income dry spell.

• If you’re self-employed or a small business owner

Being self-employed gives you lots of freedom, but one thing it doesn’t give you is Statutory Sick Pay. Therefore, income protection insurance is highly recommended in this instance.

When is income protection not worth it?

• Make sure you’re not already covered

If you’re already covered, you’d think you would know, right? Well, sometimes employers incorporate income protection insurance as an employee benefit. So, to avoid the unnecessary expense of getting the same protection twice, make sure you check your employee benefits.

• You have plenty of savings and financial support

If you have plenty of savings and financial support, we’re not saying that you won’t need income protection per se, but that if you would be able to comfortably cover your costs and expenses without income for a certain length of time, then it’s usually not considered necessary to pay for income protection insurance.

How to find income protection insurance?

There are lots of insurance providers out there, and it can be difficult to know which one is right for you. That’s why it’s recommended that you talk to an insurance broker. They can research your options and have access to lots of providers to help get the right coverage for you. To take the hard work out of finding income protection insurance, speak to Agentis today. We’ll make sure you’re getting the right level of cover.