Long- term illness is something that we pray will pass us by. But sadly, it strikes more people than we care to imagine. Government figures reveal that more than 670,000 men between 40 and 64 are absent from work for more than six months in any one year because of injury or illness. Many of these people and their families suffer financial hardship as a result, and the state offers only minimal help.
Income protection insurance, or income replacement insurance, is the answer for people worried about long-term loss of income. In theory income protection, which has been around for more than 100 years, should be high on any family’s financial shopping list, but in practice it is rarely bought – primarily because of high premiums and a long list of policy exclusions.It
is vital that you take action to protect yourself and your family in the event of long term illness – state help is inadequate and difficult to obtain. Income protection insurance is one of a number of solutions to consider, but do not buy a policy without taking independent financial advise. Your financial adviser should have a handle on key issues such as claims records, speed of payments and the appropriateness of cover offered by individual providers. Don’t
buy an income protection insurance policy without first understanding when your policy will pay benefits. Income protection policies vary greatly – some will pay if you are unable to do your own job while others will pay out only if you are unable to do any job.Do
make sure you understand the exclusions in your income protection policy. Nothing can be more upsetting than to discover that your illness is one of them.
See more do's and don't here