Income protection insurance can help to protect your income if you become sick or injured and can no longer work. It can offer a ‘substitute’ paycheck when you are no longer receiving your regular paycheck, helping you carry on paying the bills while you recover. Need more reason than that to get income protection? Here are our top 5 reasons that may change your mind.

You don’t know what might happen

In life, you never know what might happen. You could win the lottery… or you could get sick and not be able to work for a while. Insurance can help to protect you against the bad things that can happen in life, for the simple reason that we don’t know what’s going to happen. Income protection insurance works to protect your income, so that if something bad does happen and it prevents you from working, you can still benefit from an income as you recover.

You don’t want to lose your income

We work for a reason. Most of us work because if we didn’t, we would have no money. If you don’t want to lose your income through illness or injury, then it’s a good idea to protect it with income protection insurance. You buy car insurance to protect your car, you buy health insurance to protect your health, you buy home insurance to protect your home – why not buy income protection insurance to protect your income?

Your income pays the bills

What exactly does your income cover? The mortgage or rent, the utilities, your mobile phone bill, the internet, the grocery shopping, petrol for the car, entertainment, clothes, books, the list goes on. If your income were to stop, if you no longer had a paycheck coming in every month, how would you cover all these items? Even if you share the bills with your partner, could your partner cover all expenses with just their income?

You don’t want to be stressed about money

Say you got sick or injured and were no longer able to work. If you were no longer receiving your income, what do you think you would be most stressed about? Money. When you don’t have an income and the bills are mounting up, it would be very difficult to think about anything apart from money. With income protection insurance, you would receive a monthly benefit so you wouldn’t have to worry so much about money. Instead, you could concentrate on recovering.

It’s more affordable than you think

When you take out income protection insurance, there are different levels of cover. Income protection insurance will usually cover up to 75% of your monthly income, up to a certain amount. You will have to decide on your waiting period (how soon after stopping work you want benefits to start) and your benefit period (how long you want benefits to last). Choosing a longer waiting period and a shorter benefit period could make your premiums more affordable.

Have you purchased income insurance? Or do you have an insurance plan that covers disability?

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