Do I need income protection if I have a package in place with my employer?
A policy that will pay out due to being off work as a result of an accident or illness. Income usually fits around the work benefit you’ve already got in place from your employer. So your employer may pay you for example a full salary for months, so it could be set up to pay 60% if you were still needing to take time off after that first month paid by your employer. So, the policy is designed to work around what you already have in place as an employment sickness or accident benefit.
Do I need Income Protection if I am self-employed?
Income protection is normally tax-free. You can usually get up to 60% of your monthly income. Which, if you are self-employed helps in relation to your tax contributions. If you are self-employed Income Protection can be seen as your own personal furlough scheme, and when you think about it if you are relying on your wage like most of us to pay our mortgage and other outstanding bills, it really makes sense to really consider this option to protect what you have, because as harsh as it sounders lenders will only care about being paid back the money you have borrowed.
You can set it up for retirement or for a year depending on what you feel you need.
Insurance costs are always structured in a payment system of the likelihood of an event to happen, so having insurance in place that protects your income in the event of an accident or illness does tend to be more than a policy such as life insurance.
To see whether income protection is the right cover for you just reach out, my expertise and advice are free. We just want to do a good job of informing and protecting you the best way we can.