Income Protection Insurance: What It Is and How It Keeps You Financially Secure

Life is unpredictable, and a sudden illness or injury could leave you unable to work, impacting your income and financial stability. Income protection insurance is designed to provide financial security by covering a portion of your salary if you're unable to work due to a medical condition.

What Is Income Protection Insurance?

Income protection insurance is a policy that pays out a percentage of your regular earnings if you become unable to work due to illness or injury. Unlike critical illness insurance, which provides a one-time lump sum, income protection offers ongoing payments until you can return to work or reach retirement age, depending on the policy.

How Does Income Protection Insurance Keep You Financially Secure?

Replaces Lost Income

If you are unable to work due to a long-term illness or injury, income protection insurance ensures you continue receiving a portion of your salary, helping you manage daily expenses, mortgage payments, and other financial commitments.

Provides Peace of Mind

Knowing that you have a reliable source of income during challenging times allows you to focus on recovery rather than worrying about finances.

Flexible Payout Options

Policies vary in terms of the waiting period before payments start and how long they continue. You can choose a plan that suits your specific financial needs and lifestyle.

Who Needs Income Protection Insurance?

If you rely on your salary to cover living expenses, income protection insurance can be a valuable safety net. This policy is especially beneficial for:

• Self-employed individuals without employer sick pay

• Employees with limited sick leave benefits

• Homeowners with ongoing mortgage payments

• Families who depend on a single-income

To assess how much coverage you may need, use our Mortgage Affordability Calculator and ensure you have adequate financial protection in place.

How to Choose the Right Income Protection Policy

When selecting an income protection insurance policy, consider:

• Coverage Level: How much of your income will be replaced

• Waiting Period: The length of time before payments start

• Benefit Term: How long payments will continue

• Premium Costs: Monthly or annual costs based on coverage and risk factors

Get Expert Advice on Income Protection Insurance

Choosing the right income protection insurance policy can be complex. Our team at Possible Mortgages is here to help you find the best coverage for your needs. Visit our Contact Us page to speak with an expert today.

For more financial security insights, explore our Knowledge Hub.

As with all insurance policies, conditions and exclusions will apply. The cost of this insurance depends on several factors, such as your age, where you live and your occupation. As a result, the cost you will pay is based on your own circumstances.