In short, yes I’d highly recommend it especially if you’re self-employed or freelance, like myself.
But let’s chat a little more about it, shall we?
What is Income Protection?
Income protection is a long-term insurance policy that is designed to help you if you can’t work because you’re ill or injured. Most insurers will usually cover 50-70% of your income should you become unable to work. The amount of cover does go up to 100% but this depends on what level of cover you take out so do check out what’s on offer when taking out your policy.
Also, don’t be afraid to talk to those that offer income protection if you’re unsure of what you need or don’t want to spend much. They can really help to prioritise what you need to be covered for what you can afford.
How does Income Protection Cover Work?
As mentioned, income protection will cover part or all of your salary should you not be able to work, but do ensure your cover is perfect for you and what you do so you’re not left in the lurch if you do need to claim.
Your payments from your income protection should cover you until you’re able to go back to work so you can keep up to date on your bills, rent, mortgage etc. Plus not having to worry about where your next meal will come from.
As long as you have a policy, you can claim as many times as you want. Should you have to claim, go back to work and then have to claim again, then this is more than doable. There are no limits on how often you can use your insurance as long as you are to prove why you are off work.
Why do you need Income Protection?
As previously mentioned, if you’re unable to work then your wages could be highly affected if you’re working for yourself, so being unable to earn is less of a worry when you know your wages are protected with income protection. If you have others depending on you, such as a spouse or children, it’s just a weight off your shoulders knowing that you’re protected if your circumstances change.
You don’t have to be self-employed to have income protection, you can also be primary carers, part-time workers, or contractors.
If you’re renting a property or have a mortgage, it also means this will be covered if you’re unable to work for periods of time. Rumour has it, but please do check with your mortgage broker, that some banks will only offer mortgages to those that are self-employed if they have income protection!
I’d highly recommend getting income protection to safe yourself and your family and stress further down the line. Your policy doesn’t have to cost the world, just get what you can afford and it will be well worth it should you ever need to claim.