Do You Need Income Protection Insurance?

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Most of us haven’€™t anticipated the worst that could happen during our working years. The truth is, while at the prime of our lives, the possibility of losing our jobs or getting disabled rarely occurs to us. Still, it is something that we couldn’€™t predict. Income Protection Insurance can help cover for your expenses when an unfortunate event happens, such as sickness or accident.

Do you have current financial obligations?

Whether you have dependents or not, you will need Income Protection Insurance if you have obligations to pay. If getting sick or disabled means you won’€™t be able to pay for your expenses then you will most definitely need income protection insurance.

Are You Self- Employed?

If you’€™re self- employed, you won’€™t be entitled to sick leave or other work benefits, which is why you will be needing IPI. You can set up an income protection policy to have you covered in times of need, however, the calculations made on your benefit amount would be different from that of a regular employee.

Are You a Homemaker?

What many people tend to overlook is the homemaker’€™s contribution to the family’€™s financial life, despite not having an income to bring home. As a homemaker, the services you provide for the family could be very costly if you won’€™t be able to make them anymore. To be covered, your spouse may apply for an additional homemaker insurance in his/her policy.

Do you have a partner or a family to support you?

If you have a family who can provide you with financial support, then you might not need IPI. Perhaps your children are all adults who won’€™t need your financial assistance and can help you with the bills, plus you and your partner each has benefits to receive so you won’€™t have to depend on each other if one of you stops working.

Are you nearing retirement?

If you are close to reaching retirement age, then you should decide if income protection is what you need. It might not be too smart to buy an income protection policy if you only have a few years to retire, since your benefits will stop once you reach retirement age. In addition, at that age, you might have already managed to keep a few savings to tide you over until you start receiving your pension or government benefits.

Do you have outstanding debts?

If you are in danger of piling up debts, then taking insurance should be the last of your concerns. Sure it would give you peace of mind to know that you are protected from the unknown, but if paying for your premiums will mean you will have a hard time paying for your debts, then you should rethink getting income protection insurance. Chances are, you might be better off saving if you can spare a few extra funds from your paycheck.

Income Protection surely provides that much needed financial security, but this is not for everyone. Make sure you do your homework if you are unsure if this policy is right for you.

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We do not provide any financial advice relating to insurance or other insurance related topics. IncomeProtectionAdvisor help users get a competitive income protection insurance quote. We do this by working with FSA regulated partners who search and compare insurance policies from dozens of UK insurers. The quote you receive will be based on the information you submit to us. Our service is free and you are under no obligation to accept the quote you receive.
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