In the very simplest terms Income Protection is a type of protection policy designed to protect your income. It provides an alternative income if you are unable to work due to injury or illness. This can give you financial security and peace of mind while you recover.
We all have mortgage protection, car insurance, home insurance and travel insurance, to name but a few. But what pays for all these things? Your income. So why would you not consider protecting it.
Your income is your greatest asset. Without it the bills wouldn’t be paid, the mortgage wouldn’t be paid, the car wouldn’t be there. And there would be no luxuries like gym memberships or holidays. Without it your lifestyle would be financially impacted.
It can be easy to take your income for granted. But have a think about what would happen if an illness or injury left you unable to work. Do you have a plan in place to provide an alternative source of income? Ask yourself:
- How long would you receive payment from your employer?
- Do you have savings you could use to sustain your lifestyle?
- What ways can you reduce your outgoings?
- Do you have additional bills e.g., medical that need to be taken care of?
- Is there family you can ask for help?
