Income protection comparison and finding the right solution
Times are already very difficult for families around the country, and illness, injuries and unemployment affecting the main income provider can leave a family struggling with serious financial difficulties. While an income may drop significantly, or even stop altogether, regular bills, mortgages and so on will continue to demand timely payment. To prevent this kind of hardship, many income providers now take out income protection insurance. So what does income protection do?
Essentially, this depends on the type of policy taken out. Short term policies, which usually will cover unemployment as well as injury or illness, will usually pay out a lump sum to assist with payments of regular or medical bills while the insured individual is unable to work. These policies do, however, typically only pay out for a maximum period of two years.
Long-term policies usually only cover illness and injury related inability to work, but will pay out a regular income, consisting of a percentage of the family gross income. These policies are comparatively complex, and vary significantly between providers. Some offer payouts if the insured person is unable to work in their usual field of work. Others will only pay if it is impossible to work even in other, unrelated jobs.
Another range of options will pay out only if the covered person is unable to perform even daily routine tasks, such as getting up, dressing or washing themselves, preparing a meal, etc. Obviously, the amount of cover provided will vary, too, as will the premiums to be paid. This naturally makes income protection comparison a vital necessity. By comparing different options, carefully studying all available benefits, provided cover, exclusions, conditions and other terms, as well as, of course, premiums, a householder will be able to find the most suitable and most affordable option available.