Income protection can help cover your loans

Taking out a loan is not something that a person takes likely. They will understand from the outset that the agreement rests on them being able to pay back what they owe in instalments and with interest added on top.

However, it can be one of the biggest shocks to find that not only have you been made redundant, but you will still have to find a way to make sure your loan repayments continue during this time.

Whatever your loan was initially for, it can look like a huge burden at this point – but with income protection insurance it needn’t be. This can cover for these unforeseen circumstances and ensure your financial obligations are still being met.

Be better prepared for your future with this form of life insurance

With the economy the way it is at the moment it is not easy to find a job role that meets your salary expectations as well as being at the level you would expect for your years of experience.

However, with income protection insurance you won’t have to concern yourself with a sudden change in your income level and continue to receive a steady income as you find something suitable.

With income protection insurance you can make better preparations for what lies ahead as you know that your financial concerns will always be taken care of.

Like with a life insurance plan, the policy will cover the holder and their family so you can continue to provide for them whatever happens.

Income protection to safeguard your future

The ability to continue paying your bills and keep up with any mortgage repayments is not the only advantage to taking out an income protection policy.

Any drop of income takes some getting used to and so those still trying to recover from an accident, illness or loss of job, can take comfort in the fact this transition period needn’t be so stressful.

You will be able to call on all the resources you need as you come to terms with this change and it also allows you to concentrate on making a full recovery and planning for a brighter future instead of focusing on the current realities of the situation at hand.

How does this insurance relate to any outstanding loans?

If you lose your job in a sudden manner then it is certainly an understatement to say that you will have to assess all your financial obligations and ensure you can remain afloat at this difficult time.

However, with an income protection insurance policy in place, this can help you out in a number of ways. One of these is with regards to any major loans you have taken out.

The ability to continue with the repayments is important despite the change in your circumstances and even though your source of income has been severely affected, you can use the insurance to meet all your loan requirements.

How this insurance can help you keep up with mortgage repayments

The ability to manage mortgage repayments is certainly a great feat these days, especially as financial stability is becoming less and less of a guarantee.

With income protection insurance, those who are either employed by a company or work self-employed can benefit from a mortgage protection plan. It basically means that should the person find they are unable to work for some reason, the policy can come into effect, ensuring that their monthly mortgage repayments continue to be made, along with other household outgoings.

Therefore, income protection is great peace of mind when having such a financial burden to carry.

Will my sickness insurance policy protect my family too?

The answer to this question will depend on the specific policy you choose, but broadly speaking, there are sickness insurance policies out there that cover your immediate family members should they fall ill and be in need of constant care.

This is why it is imperative you choose the right income protection insurance for your situation. Therefore, should you wish to include your wife and children on the policy and gain access to these benefits of care, you are advised to go for insurance that ensures your entire family are well taken care of.

Always read the terms and conditions of the policy before you buy it as there will be a deferral period before any claims can be made in this regard.

How sickness insurance can help protect your income

This article is aimed at those who want to know more about sickness insurance and why it can really prove useful in a variety of scenarios.

If you are suddenly and without warning made redundant and you are later diagnosed with a serious illness, sickness insurance can ensure that as much as 65 percent of your gross monthly earnings are provided for you.

With an income protection policy, you can prepare for such eventualities and if you find you cannot work to your full potential due to redundancy or illness, you can rest assured that your recovery can continue while your income is still being paid in to your bank account.

Does income protection cover maternity leave?

The answer to this question is ‘yes’, but you will still need to read the full terms of the policy to make sure that you are covered for this eventuality. This is because not all insurers include a pregnancy benefit in their premiums.

If you want to have total peace of mind that your income protection policy covers the period of maternity leave you will need to search for insurers that allow your valuable cover to stay in place during this time. You should also check that you are fully protected while on maternity leave.

This is certainly nothing to worry about though as many insurers are now recognising that women sometimes require extra support during this critical period of their lives, with the income protection policy becoming more crucial than ever.

What about income protection cover for the self employed?

Unemployment insurance is a type of cover that can help those who are self-employed (as well as those contracted to an employer) and ensure that if your industry does experience a slow-down, you won’t be affected.

This kind of income protection insurance is of real benefit for those who work for themselves as by the very nature of the work they do it is going to be less secure than being sure of a regular wage each month.

The policy can really be of benefit as you can anticipate any shortfalls in your income and be protected against any financial issues that may occur.

Does income protection cover redundancy?

Income protection insurance covers the individual policy holder against a range of eventualities which include redundancy. Therefore, should you find yourself losing your job you will be able to call on the protection cover in your time of need.

While different policies offer various benefits, you will find that with income protection insurance, redundancy cover is usually set as standard. This is great peace of mind, especially in this day and age where no job is really deemed safe.

Policies can be compared for the benefits they offer, so it won’t be difficult choosing the right level of cover for you and your situation.