Life insurance can be a crucial safety net for families. Make sure you know how to choose the best type for your needs, get clued up on the pitfalls to avoid and discover some simple ways to cut costs. Many people, at all stages of life can benefit from the peace of mind a Life policy or Critical Illness policy can bring. Simply Mortgage Place Ltd will help you work out how much cover you need with your policies. In the event of your death, it may not just be a mortgage you want to have paid, you may want to leave your loved ones with enough money to cover income you would have earned or pay for University fees etc. Life policies and Critical illness policies have a few extra features which can be beneficial for you. It’s important you take advice when arranging cover so you can be assured you will have the level and type of cover which best suits your needs.
An Income Protection Policy is one of the most important insurances that you can consider, as without your income, your life style could change dramatically. What would you do if you could not work due to disability or ill health or you are made redundant? If you had a reduced income, how would you pay your bills? Could you survive on State Benefit alone?
An Income Protection Policy is designed to protect your income if you are unable to work as a result of disability or ill health or company downsize. Unlike an ASU policy which typically has a maximum term of 1 or 2 years, an Income Protection policy can have a significantly longer term, and typically upon a successful claim would pay out a monthly tax-free income after your chosen deferred period until you either recover or reach your selected retirement age. Unlike an ASU policy, Income Protection policies typically do not protect you against redundancy.
The maximum cover you can have is typically between 50-60% of your gross income, however, as the benefit is paid tax free, you can replace a high percentage of your income in the event of long term incapacity.
Some of the most common conditions covered by income protection insurance are mental illnesses such as anxiety, stress or depression & back pain.