Protect your Own health with Income Protection
19 July 2010
Protect your own health with Income Protection
You look after the wellbeing of your patients but how often do you think about your own health?
Sadly, 2.2 million people of working age will be off work for at least six months at any one time through sickness and injury. Yet, just one in nine people has Income Protection to provide a regular income if the worst happens.
What is Income Protection?
Income Protection insurance provides a regular tax-free income if you can’t work because of illness or injury. It covers a wide range of conditions and provides an income until you return to work or retire.
What level of protection do I need?
Firstly, work out how much income you’d need if you could no longer work. You might have savings that would last for, say, two months so you could defer your payments until month three. My advice is a small amount of cover is better than none. So, look out for low cost starter products and buy the best you can afford.
Research claims history
Look at a companies claim history and the conditions they pay out on. After all, there’s little point in buying a protection policy that won’t actually pay out when you need it.
I personally believe reputable providers pay over 90% of claims. In 2009, dg mutual paid out 99% of our claims and the most popular claim from our members were viral infections.
Is Income Protection right for me?
Income Protection is a great product for people who are self employed and do not have the luxury of an employer’s sickness policy to rely on.
And Consumer champion Which? thinks Income Protection is beneficial as it says
“The one protection policy that every working adult in the UK does need, is the very one most of us don't have – Income Protection.”
Can I trust Income Protection providers?
Trust is understandably low within the financial industry. But please don’t tarnish us all with the same brush!
Friendly Societies were set up in the 1800’s to help members in hardship and it’s still our aim today. We ultimately exist to help our members, not shareholders. So, there are no large bonuses and all profits are shared between members upon retirement.
