subject: Understanding The Importance Of The Correct Income Protection Insurance [print this page] Income protection is a type of insurance that pays out to the policy holder in the event of them being unable to work under a number of circumstances, paying out the insurance either weekly or monthly. In the unfortunate and unforeseen events that occur in so many peoples lives every day, with this type of insurance, a massive load can be lifted off your mind, knowing that you wouldn't have to worry about financial difficulties. Let's face it, if you were to suffer from a terrible long term illness that rendered you unfit for work, this is the last thing you and your family want to be concerning yourselves with.
There are two types of policies available, with either long term or short term. The long term policies refer to the time in which your employer stops paying you sick pay and when your pension begins, whereas the short term policy is meant for the safeguarding of your mortgage, bank loans, credit cards, household bills etc. Ensuring that you are able to live your life as ordinarily as you possibly can in the event of misfortune, the duration of this policy is of one to two years.
Many of these types of insurance plans come with rehabilitation benefits, this is where if the policy holder is to become sick the insurance is also used to help them get better, and if they lose their job it can be used in assisting with the possibility of a new and better occupation.
There are insurance plans out there on the market today that pay out after just four weeks of being absent from work, but in many cases along with this comes more monthly premiums than the six month time period. It is always better to opt for the six month time period for this reason, but if you are unable to receive sick pay from your employer and have no savings to live on, this is not always possible. Although there may be a slight disadvantage to the shorter time period it is still a more than worthwhile plan to go for, you may be paying out more but it would be more than worth it in the long-run. It is worthwhile to look into the duration that your employer would be paying you sick benefits in order to determine which plan is best suited to your needs.
To get the best out of the benefits of your income protection insurance you really do need to be assured that the policy favourably fits your personal needs and lifestyle. In order for this to work for you the best thing to do is to shop around and see what various companies have to offer. Some may not cover all illnesses, although there are a vast amount of companies out there who do it is just a matter of finding the right one. It is not only a suited company you have to look for but also an insurance package within the company that best fits you financially and personally, so making sure that you specify your requirements loud and clear is a must.
To choose from the UK's leading income protection specialists out there the best way to go about it is to visit an insurance comparison website, this way most of the work is done for you. With comparison experts such as those at Income Protect you are sure to get the best and most cost effective plan out there, offering you authorised professional advice, discounted premiums and a fully comprehensive search of what is out there on the market today.
by: Diane Kirby
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