Finding Cheap Income Protection To Prevent Hardship
The thought of becoming too ill to work or being made redundant fills many individuals with dread. Especially as often, financial situations are already stretched to precarious limits, making it impossible to save towards potential emergencies.
Although an employer will pay sick pay for a specific period, followed by statutory sick pay, after a certain amount of time income will simply stop. Unemployment benefits are rarely high enough to adequately cover a family’s needs, let alone pay for a mortgage or other outstanding loans.
For this reason, an increasing number of individuals are looking into income protection. There are two main types of income protection insurance, namely short and long term policies. Long term policies are typically designed to provide an income, usually around 50 per cent of the usual gross income, in the event of injury or illness; these policies do not, however, cover periods of unemployment.
Under the umbrellas of long term insurance policies, there exists a range of different options: from those that pay out if the insured individual is unable to go to work in their usual capacity to those which only paying out if the insured can no longer perform normal daily tasks.
Short term cover often includes unemployment. Here, people can opt for monthly payments or a policy that will pay off a loan or mortgage – the latter is typically known as PPI, or payment protection insurance. Families need to carefully compare as many quotes from providers as possible, as available cover, terms, conditions, exclusions and premiums vary significantly between providers.
This is made far easier by comparison sites, where different types of cover are explained, the advantages and disadvantages of different policies are highlighted and an opportunity is offered to obtain suitable quotes. Comparing these quotes will help to find the most suitable cheap income protection for a family’s needs.