What you need to know about income protection cover

Everyone has a unique financial situation but Income Protection Cover could be especially important for some.

09:54 19 September 2013

We all have various needs in our lives, and sometimes insurance is available to help with those needs. For some people Income Protection Cover might be considered a necessity, while for others it may not be considered at all. Some may even be a little confused about what Income Protection Cover actually entails. Here are a few things you should know if you’re wondering about Income Protection Cover:

• Income Protection Cover is not the same as Payment Protection Insurance or Critical Illness Insurance. It provides an income substitute if certain requirements are met.

 

• The most common causes for someone to file a claim are because of accidents and illnesses which cause a person to lose working income for an extended period of time.

 

• Premiums may vary by the deferment period that is chosen, but be sure to think in terms of what may happen in the future and don’t just automatically choose the least expensive option.

 

• Income Protection Cover offers individuals a way to protect their income, but also the investments that have been made with that income. Anyone who is concerned about the state of their heath, or family health history would be wise to consider this type of insurance.

 

• Some employers offer similar programmes that will make payments to an employee who has been out of work for a significant period of time. If your employer has that option you may not need to get Income Protection Cover at all, but if you are concerned with the possibility of losing jobs or what might happen if you were between jobs it could still be a good decision.

 

• This type of insurance should be carefully considered since the risks are a little different for each individual. One person could potentially risk a lot if they don’t have the insurance, while someone else might not.