Top Tips for Income Protection
01 December 2009
Five Top Tips For Choosing Income ProtectionMore people in the UK insure their own pet’s health rather than their own. But, sadly, 2.2 million people of working age will be off work for at least six months because of sickness and disability. Income Protection insurance provides a regular tax-free income* if you can’t work because of illness or disability. So, here are our five top tips for choosing the right insurance policy for you:• What can you afford? Work out how much income you would need if you could no longer work. Remember that a small amount of cover is better than nothing at all• Do your research Make sure you’ll be protected against common causes of long-term absences, including stress and back problems• How often does the company pay out? Look into a company’s claims history. If a provider has a claims payout rate of over 90%, it’s usually a good sign• What’s in it for you? Does your policy provide you with more than just peace of mind? For example, if you choose a Holloway product from a Friendly Society, you’ll receive a share of the company’s profits when you retire, regardless of how many claims you’ve made• How soon would you need to receive your income? Choosing to defer the length of time before you receive a payout usually makes your monthly premium cheaper. But, think about how you would cope financially during this time.* under current UK legislationTips provided by dg mutual, who are authorised and regulated by the Financial Services Authority.
