If you were unable to work due to accident, injury, sickness or redundancy, you would still need to support yourself and your family financially. Whilst you might have enough savings to tide you over for a short period off work, if it went on for longer, it could be a struggle to meet mortgage costs and other household bills; this is where an income protection policy can really help.
Policies are designed to pay out if you’re not able to work and earn money due to illness or injury, and, in some cases, forced unemployment. They can meet the needs of families who want to protect their regular expenditure, home-owners with monthly mortgage payments, self-employed people whose incomes depend on their ability to work, and employees who receive limited or no sick pay from their employers.
More policies taken out
Figures from technology provider Iress6, show income protection sales via its software increased 50% in the first quarter of the year, indicating that more and more people are planning for their family’s financial future and protecting themselves against life’s unexpected and unwelcome events.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.