If you’re undecided about the need for income protection, take a moment to think about how you would pay for your mortgage, car loan, bills, children’s education, insurance and so on if you are unable to earn a living due to illness or accident. Financial planning is at the heart of making sense of the above.
Planning for the future
Your income is one of the most important assets as it allows you to maintain your current lifestyle; it pays for almost everything you have. Even for those with savings in the bank, a long term illness or period of time out of work could mean real financial hardship if there was no cover in place.
An Income Protection plan pays you a monthly income if you are unable to work due to any illness, accident or injury. You can ensure you continue to meet your monthly mortgage repayments and household bills and maintain your current standard of living.
Consider your needs
When evaluating your need for income protection you must ask yourself the following questions:
- How would a sustained absence from work impact me financially?
- Will my family be affected if I was off work indefinitely?
- Will I be able to maintain my repayments if my income ceased temporarily or over a longer term?
- How long could I sustain myself if my income was stopped completely?
Without income protection in place, you will need to be able to sustain yourself indefinitely using your savings, live off the State’s disability allowance or, if available, rely on your spouse’s income.
If you are in full-time work or are self-employed and earn an income then you can take out Income Protection that will continue to pay you an income until you are well enough to return to work, or if not, until your retirement age.
For further advice, please view our list of professional financial advisers.
This blog was brought to you by SYS Group who are expert Financial Planners with particular expertise in pensions, life protection, retirement and inheritance planning, savings & investments and strategic wealth management.