*Protecting Yourself and Your Family Finances is in collaboration with Lifesearch
We work hard to provide the life we have. I aim to provide the best life I can for my girls. Growing up I had a wonderful outdoorsy childhood. But dad and mum didn’t have a lot of money. I have 3 other siblings so everything was shared or hand me downs. They couldn’t afford to buy us the latest toy or afford for us to go on the camping school trips. We were lucky to grow up on a smallholding so our childhood was enriched in other ways. But now as a mother, I work hard to provide for us and I don’t want to lose this. Protecting yourself and your family finances is a very hot topic in these current times and one that must be thoroughly thought out. When Mr B and I bought our first house we took out income protection insurance and it’s even more important when you have a family. With so many people facing job losses and financial instability at the moment, income protection is vital.
In this post, I’m describing to you what income protection insurance is and what means to me, and why do I need it.
What Is Income Protection Insurance?
Just like any insurance its a policy that covers you. In this case, an income protection insurance policy pays you an income if you are unable to work due to illness or an accident.
The payments usually continue until you are able to go back to work, retirement or death. It’s a safety net that can give you peace of mind so you are able to pay your essential bills.
The lower you wait or defer your payment to start the lower your monthly premiums. So as an example you could defer it to start after your employment sick pay has ended.
Do I Need Income Protection?
There are some employers out there that only provide limited sick pay cover, like just a few weeks. Having income protection insurance might not be the value of your whole salary but what it is can let you sleep at night and take the pressure off, leaving you to get well. This is important for me and my family. I want to make sure we can manage to live.
You can tailor your own insurance to fit within your budget. I know if it was me I’d rather have a little something coming in than nothing at all.
When you buy a house you need some kind of income protection available to you to pay your mortgage should something unforeseen should happy and your wage has gone.
Factors Involved With Income Protection
The cost of a policy is determined by many factors, that’s why the policy is tailored to you. Factors include:
- Age – Unfortunately the older you are the higher the risk of developing health problems. Therefore your premium would be higher.
- The job you do – If you have a risky job, you have a higher chance of claiming, compared to someone in a “safe” job. Therefore your premium would be higher.
- Smoking status – If you have smoked or are a smoker your health will be possibly poorer, therefore your premiums will be higher.
- Deferred period – The longer you can wait for your policy payments to begin the lower the premium.
- Medical history – health issues in the past, may increase your premium.
- General health – current health and weight – BMI
- Policy terms – How long do you want to wait before it pays out? The longer you wait the lower the premium.
I do hope you have found this post useful in some way to protect you and your family income finances. It’s always good to do your homework before you decide what’s best for you.
Thanks for stopping by.