INCOME PROTECTION

When asked what is their most valuable financial asset, many people automatically choose their house or their car.  Quite understandable, they are most peoples largest purchases after all.

But what about your income?  Or rather your ability to continue to earn it.  Think about it - multiply your annual salary by the number of years left until you retire, that's how much your income is worth to you, even if you never receive another pay rise.

We all insure our houses and our cars, quite rightly, so why not ourselves?

If you suffered an illness or were injured in an accident and could not continue to work, how long would your finances be able to cope?

If you are a full time employee, you should check if your employer has some cover in place for you, and if you are entitled to state benefits.  If so, great, just make sure this is sufficient for your needs, you could take out a small policy to top it up if necessary.

If you are self-employed, however, you are on your own.  No kind employer to support you, and no state entitlement either.  You really must consider some level of income protection cover.

You can cover up to 75% of your relevant earnings, and the benefit will be paid for as long as you are unable to work due to illness or injury, until you reach the end of the term (normally your retirement age).

Premiums are allowed as a deduction from your income tax, unlike other forms of insurance, which is great.  If you do make a claim, the benefit you receive is taxable as income in the normal way.

If you would like to arrange a free, no obligation consultation on your income protection needs please contact us.