What it does
Income protection insurance pays out a regular tax-free replacement income if you become unable to work because of illness, injury or, with certain policies, unemployment. It could help keep up with your mortgage repayments and other living costs until you’re able to return to work. Policies have a waiting period before they pay out, which begins when you become unable to work. The longer the period chose, the lower your premium. It’s a good idea to find out what your employer would pay you, and what state benefits might be available so you can choose an appropriate waiting period.
Your Coast to Coast Adviser will consider these, along with any other insurance policies you have to help you decide. The premium you’ll pay will vary depending on your age, health and job, as well as the level of income you wish to protect.
Why you might need it
If you become ill or suffer an injury during your working life an income protection policy can help protect against any possible loss of income, and speed your return to work. You may find it useful to consider how much you spend maintaining your current lifestyle, and the impact of any loss of income.