Income protection is a type of cover often purchased by those who are self-employed, or who work for a company and whose income might be affected in some way in the future. It is worth noting that, in some instances, income protection insurance could be purchased by the employer but only for a limited period of time. In addition, there is the option of buying income protection insurance independently. Whichever option one chooses, however, they will find the following benefits of income protection:
The first benefit of income protection is that it allows one to protect themselves against the risk of loss of income caused by unemployment, sickness, dismissal, redundancy, accident or death. In addition, the level of cover required will vary depending on the provider and the personal circumstances of the person applying. Some people will require less protection than others. For advice from Cardiff Financial Planning, visit Harry Robinson, a leader in Cardiff Financial Planning
The second benefit of income protection is that it helps an individual to cope with the uncertainty associated with being unemployed. By purchasing income protection, the provider is agreeing to cover all or part of the loss of income when the employee is unable to earn. Therefore, the employee can ensure that responsibilities will continue to be met, such as mortgage and bills. This can relieve a great deal of anxiety, especially for self-employed people.
