How would you pay your household bills if you lost your income?
With millions of people across the UK facing redundancy in the midst of Coronavirus, the thought of losing the monthly salary that pays for your lifestyle can be a daunting prospect.
If you’re not a homeowner, your monthly wage could still be paying for more than just your social life. Rent, car loan and credit cards (to name just a few) are all financial commitments that would still need to be paid.
Should the worst happen, income protection is could be a solution to help cover some of your financial commitments. We’ve put together some simple questions and answers below to explain more about it.
What is income protection?
It is an insurance policy that can help replace some of your income in the event of accident sickness or unforeseen unemployment.
How does income protection wotk?
In the event of a successful claim, the insurer would pay out a monthly sum that can be used to help cover the cost of any financial commitments. The monthly sum will be payable until you either are back in work or until the end of the policy’s claim period. Claim periods are typically between one and five years. As with many insurance policies, there is usually a waiting period before policy claims can start. It is possible to set a deferment period so that they start to pay out after your company sick pay has finished, which can also make the premiums cheaper.
How does Coronavirus impact income protection?
You wouldn’t be able to make a claim for unemployment if you take out an income protection policy after you’ve lost your job as a result of Coronavirus, but a policy could help to protect your income in the future once you’ve returned to work.
Individual insurance companies will each have their own exclusions and restrictions regarding COVID-19 on new policies, so make sure you check this with your protection adviser before you take out a policy.
How much does income protection cost?
The cost can vary based on the amount of cover you require or how much you’d like to spend, but typically, an income protection policy could cost between £20-50 per month.
How can I get income protection?
Our team of experienced mortgage brokers in Sheffield can review your needs and help to find the most suitable options for your personal circumstances. They can do this either over the phone, by virtual meeting, or during a face-to-face appointment at a time that suits you.
To book your mortgage protection review today with an advisor in Sheffield, call us on 0114 3583237 or send us an e-mail.
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