Archive for the ‘incomeblog’ Category

When is the right time to buy Income Protection Insurance?

Thursday, August 18th, 2011

There are many that have yet to discover what benefits income protection insurance have to offer and those who are unsure of its importance. Perhaps already having certain insurance policies in place such as life insurance, there needs to be a certain clarity made between income protection and other seemingly similar policies.

Ok, if you were to look at life insurance and other policies such as critical illness insurance, it is important to deduce straight away that these two policies should in no way be connected with income protection insurance. Possible similarities between income protection and critical illness plans are apparent in the fact that they pay out if a person contracts a critical illness or are no longer able to work due to that illness but life insurance only pays out if the insured party dies.

No help there for the insured party then is there? With that in mind, critical illness policies pay out a lump sum cash amount whereas income protection pays a percentage of the claimants’ salary each and every month, ensuring a regular income is still attained. Depending on the level of cover a person chooses, they could in effect receive payments up until the day they retire if their injuries or illness is serious.

So in the final conclusion, the question remains of when the right time it would be to take out income protection. The answer can be very different for individual cases but by any standards, the earlier you take out a policy, the more cost effective it will be in the long run, especially if there is a history of health problems in your family or if you work in an industry that is dangerous or has high risks.

Take advantage of Income Protection Insurance, protect your future today.

Monday, August 15th, 2011

In today’s society, we are surrounded by so many types of insurance that often it may make many feel nauseous, with the weight of the world bearing down on their shoulders as to finding the right decision as to what insurance policies are necessary and which ones are just there for added peace of mind and protection.

There are few insurance plans that are designed to assist you over a long term basis and these can be extremely helpful if perhaps you have lost your income through becoming ill or after having an accident. Both individuals and employers can take out income protection insurance plans, and bespoke policies can be set up for employees to benefit from in the event of an accident occurring.

Whatever the events are that lead up to a claim being presented, the fact is there as clear as day….without the right help and assistance, there would be nothing that individual could do to protect their families from feeling the brunt of the effects of a loss of earnings.

The advice for many is to not delay in any way when setting up any income protection. The earlier you start, the less you will pay overall throughout the oncoming years and for many, taking out an Income Protection Insurance Policy has enabled them to receive exceptional peace of mind.

Designed to present you with a tailored and affordable way to protect against future possibilities, especially if your future holds a particular risk that your job security may be flawed in any way, income protection matters and all should consider their options.

Income Protection Cover: What You Should Know – Part 2

Monday, August 1st, 2011

Your mortgage on your home is probably the biggest loan that you have ever made in your life. It signifies enormous responsibility and a huge investment. In this shifting financial climate, keeping up with your loan payments could be a continuous worry you may have. Just think, what could happen if you suddenly lost your job, or if you become unable to work because of an illness? How then are you going to pay your mortgage? You can have peace of mind if you take out a income protection insurance policy.

So, how does it work? Given that you regularly pay the income protection premium, you have to make certain that you have sufficient money to wait before you make a claim to the insurance company if ever you ever get sick or have an accident. You should know if your policy’s extent is indefinite, and if it won’t wait until you are employed again. You need to ensure that you recover from your illness and find a job before your policy expires. Normally, policies end after one to two years, but if you wish to pay a higher premium, you can go
for a longer time span. Nevertheless, you do not want to be unemployed for more than two years.

When looking for a income protection policy, you need to know that there is a preliminary exclusion period, which usually takes effect when the contract starts. You cannot file claims within this time period. This one normally coincides with unemployment, and the ruling-out period can last from thirty to sixty days. A so-called excess period also exists and this can be around thirty to sixty days. During this time, you will be prohibited from the claims payment. Often, the company will cover the mortgage. Other related bills like pensions and
insurances will also be addressed by the company. The amount will differ depending on the company.

Don’t be put off by extortionate income protection premiums.

Friday, July 29th, 2011

Worrying about how you would ever pay your bills in the event of a financial blow such as losing your job or the ability to do your job is a trying and testing issue that many individuals spend a certain amount of time considering throughout their working careers. Definitely as of late with the state of the economy over the last decade, job security in many sectors has come under fire and not even the most secure of jobs within certain industries have been without the worry of possible loses.

 

Understandably then that when faced with certain income protection policies that seem to be quite high, there are many that choose to decline the chance to take out protection against their income. In a way the whole thing can be a double edged sword…but only if you are to rush into things and find yourself only checking one or two companies for a comparison.

 

In order to find a viable solution and to find an insurance specialist that can present a policy that is not only tailored to your needs but also one that fits into your budget, you need to do your homework. Checking insurance comparison sites for the best offers that can be found with a little investigative work and looking at various requirements and points that can lower premiums all offer added assistance in finding an affordable alternative.

Income Protection Cover: What You Should Know – Part 2

Wednesday, July 27th, 2011

In any event, losing an income can be hugely significant, however large or small it may be and there are really no ways round finding a quick solution other than finding a new job or a way to replace that income as soon as possible. However with Income Protection Cover, you can help protect against the damage that can arise from a sudden drop in a household’s income. What Income Protection Cover can effectively do, is provide you with a monthly income based off a certain percentage of your gross salary so that important outgoings and bills can still be paid and you still gain money to assist in your family’s daily running costs.

 

Because certain insurance services such as Income Protection needs to suit the needs of individuals, the insurance plans are normally quite flexible, providing the right assistance to benefit a selection of budgets, requirements and outgoings, reflecting obviously on how much the monthly premiums will be, from customer to customer. With many insurance specialists you need to be 100% sure of what you are eligible to gain in the event you need to make a claim, such as some insurers will not pay out if you are made redundant, or if you have suffered an accident through wilful neglect and are trying to claim a loss of income. Be honest and true at all times with any claim or policy to avoid disappointment.

Income Protection Cover: What You Should Know – Part 1

Monday, July 25th, 2011

It could be problematic if you suddenly lost your job. But what’s worse is if you lost electricity or other basic utilities in your home. You could lose electricity, the use of your phone, or even your entire home if you failed to pay your mortgage on schedule. You should admit it, your home is the most important security layer and losing it can cause you really big problems. Hence, you should act now and be prepared for whatever unfortunate circumstances that you may find yourself in.

Start looking for mortgage payment protection insurance. This will let you keep your mortgage payments up-to-date in case you become unemployed or derailed by layoff rumors. Even if you have a good job, accidents and personal injuries can occur at any time. Such unfortunate events can affect your monthly income or could even result in unemployment. For a little monthly premium, mortgage payment protection insurance can help you to keep your regular mortgage payments. Although deciding to have this form of protection is a big commitment, it is definitely worth considering especially if you are bothered with the possibility of losing your job or income.

Read the insurance schedule

Tuesday, July 19th, 2011

When you are buying income protection insurance, make sure you fully understand the methods of making a claim, what you have to show in order to make that claim, and the criteria that need to be fulfilled. There is no point buying the protection if there is no way that you can claim on it. Therefore, it is always wise to read the contract and make sure that the mode of your employment fits with the policy. Many people have found that they thought they were covered by income protection insurance, only to find out that the policy no longer covers them because they changed job some years ago without informing their insurer.

Then, when they come to that awful point in life when they suffer a long-term illness, and they find that they are left high and dry. There are reports in the news about complaints and some companies being accused of mis-selling policies. However, look closer at many cases and you will find that the policy was the right one for the individual at the time they bought it. Life then went along okay for a while until they changed job. It was at this point they should have made a call to check whether a different policy was needed to cover them. So the action point to take away now that you have read this is: get your policy documents out and make sure they are still relevant to your job. If they are, then you can sleep safe in the knowledge you are covered.

If they are not, you will feel thankful that you have read this and have been given a nudge to take action.

Cannot work because of illness

Monday, July 11th, 2011

‘Life is what happens when you are making other plans’ – a good and relevant quote from John Lennon. He is telling us that things happen unexpectedly and without any warning. The late Beatle was also saying you cannot plan for these sudden and surprise events. He was partly right – however, individuals can put plans into effect to make sure they are covered by those sudden twists and turns of fate.

Income Protection Insurance is a way of covering our backs financially when the times are good to make sure that when things go wrong, It is still possible to claim a certain level of income and maintain a normal standard of living. This protection will usually cover you for long-term illness and accidents that mean you cannot continue to work in your usual profession. There are some policies, which can cover you for unemployment and redundancy too – however these are few and far between.

IPI could pay up on a claim, such as someone having a severe back injury in a profession where carrying heavy loads is necessary. It could conceivably pay out for a singer if they have had throat surgery and can no longer earn a wage from singing. We are all individuals and have individual needs. Thus, the point of each policy is to suit whoever it is written for.

Therefore, go home now and get out your policy and make sure that you have one that relates to your current needs and work. If you do not, then it is time to contact your insurer to make sure alterations are made in that policy.

Analyse your life

Friday, July 8th, 2011

Take a moment to look at how you live your life. It is not only about getting up for work everyday and then heading home to bed – we do a lot more with our lives. We like to socialise with friends and family, holidays are considered an essential fixture of the year, and many of us want to make sure we are seen in a good car. Analyse your life and the sort of things that you like to do.

Now comes the interesting part of this exercise: add up how much all of this life-style costs you every month. Make sure it is fully itemised and listed in order of importance to you. While you are completing this, just make sure you are imagining in your head how it feels when you are achieving all of this and the prestige you get from it.

 

Once you have completed this exercise, imagine you are being called into your boss’s office and being told that you are being made redundant. You go home and realise life is going to have to change forever. Now go through your itemised lifestyle and cross out everything you would not be able to afford on a severely reduced income.

How does it feel? What does your lifestyle now look like? What has happened to your prestige? Now imagine that you are opening a folder containing your income protection insurance details and realising that you can make a claim.  You are now aware that your life does not have to change as drastically as you first thought. Go through that list now and add in some of your favourite things about life. There is a strong chance that income protection could protect your way of life if the rainy days came.

Is Income Protection for you?

Monday, July 4th, 2011

Income protection is for anyone, no matter what age you are or where you work you are entitled to take out income protection.

Many people have come to take out income protection insurance over the past few years due to the economic climate being very unstable. With the economic climate being unstable employers are offering less benefits to their employees and so people are taking it upon themselves to ensure they are protected in case they end up facing long term unemployment due to incapacity.  Income protection enables you to receive monthly or weekly tax-free payments which equate to a percentage of your monthly wage when the plan was taken out.

When you are unemployed you still need to maintain mortgage and utility payments, so having income protection will enable you to do this and if you have a long term illness you can rest knowing that your home payments are covered and you can focus on returning to full health. Once you are of health to return to work then payments will stop, and you will be expected to continue premium payments.
There are multiple types of insurance plans which help you maintain payments when you become unemployed. Some like Mortgage Income Protection cover you due to most reasons for unemployment others only cover you if you are unemployed due to illness or an accident. Payments will be issued after a pre agreed deferred period.

Are you unsure as to if income protection insure is for you? Just review all payments you currently make and try and work out how you would maintain these payments if you were to suddenly become unemployed. If you would struggle to maintain the essential payments, then the suggestion would be to consider taking out income protection insurance for peace of mind.