Why Buy Income Protection Insurance Policy?
- Self-employed: this can be vital for self-employed people who do not have access to sick pay through work. However premiums for self employed people can be higher.
- Add-on to benefits offered by an employer: if employed, check your contract, as your company may only pay your salary for a limited period of time. Income Protection Insurance could be vital to ensure you can pay bills and meet mortgage repayments long after work benefits have ended.
- Faster payouts: the Association of British Insurers says that typically the period when the money starts paying out is faster than Mortgage Payment Protection policies.
Income Protection Insurance: Exclusions
Those considering an income protection policy should be warned that most insurers will have a list of situations where they will not pay out. It is important to check with the insurer what is on their list. Typical situations on exclusion lists can include:
- Criminal activity
- Drug or alcohol misuse
- Self inflicted injury
- Pregnancy
- HIV/AIDS
See also: Mortgage Insurance, Mortgage Protection and Mortgage Cover
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