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What is income protection

Income protection
Most clients protect themselves against death, lots of clients protect themselves against critical illness.

Most do not cover against loss of income or “income protection”. The irony with this is that you are statistically far more likely to be unable to work and need an income protection claim than the other 2 covers.

With the average property being repossessed within 5-7 months of an ‘event’, and the average protection claim length being around 4 years, income protection is the hot topic just now and could be the difference between you being able to stay in your home and having to give it up. Here we look at a real-life example where income protection has provided a real difference.

Adams story is well documented online and tells the story of how he was returning from a business meeting and parked behind a queue of stationary vehicles, a heavy goods vehicle was behind Adam and the driver was busy changing music on his phone, the driver of the HGV went into the back of Adams vehicle at 51mph causing a broken spine, collapsed lung, broken ribs and a crushed abdomen.

Adam had a lengthy period of time in hospital and had 3 spinal operations over the next 28 days and during this period became increasingly worried about how he was going to pay for his mortgage and support his family. He then remembered he had taken out an income protection plan.

He made a claim which he found to be surprisingly easy and as a result after a 13-week deferred period (time period to elapse before payments commence) he started to receive a monthly payment meaning he could focus on his recovery as oppose to how to support his family at the worst possible moment.

A year later Adam is now back cycling and plans a return to triathlons. This journey made all the easier being suitably protected. Our expert team will help get the right protection for you and make you understand the risks and value of having suitable cover in place.

Your home may be repossessed if you do not keep up repayments on your mortgage.There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.