Life is unpredictable. Accidents, illness, or unexpected life changes can happen to anyone. If your ability to work suddenly stopped, how long could you keep up with your bills, mortgage, or lifestyle? That’s where income protection comes in. But do you really understand how income protection works and how it can help you?
Here’s 5 questions to ask yourself to really understand the value of this product.
1. What would happen if I couldn’t work for six months?
If your income stopped tomorrow, would you rely on savings or family support? Does your company offer sick pay, or will you be reliant on social welfare support? Most people under estimate how long recovery can take and how quickly expenses pile up. Income Protection can provide a monthly payout until you’re back on your feet.
The average length of claim of an income protection policy is 7.5 years.*
2. How long could I survive on my savings?
Even healthy savings can deplete quickly when there's no income coming in. Remember it’s not just the ongoing living expenses you’ll have to cover but those unexpected expenses that an illness or injury will bring. Income Protection offers a financial safety net, starting after a chosen waiting period and continuing until you're well enough to return to work or until retirement, depending on your policy.
The average age of an income protection claimant is age 49 for men and 47 for women.*
3. How much is my employer sick pay and is it enough?
Many people assume their employer will cover them and while lots of companies do offer some level of cover, the schemes are often limited. Knowing what your workplace offers is essential as a starting point. Then it’s a case of topping that up with your own tailored income protection policy to close the gap.
You can cover up to 75% of your income in total (less any social welfare benefits)**
4. Do I have the right type of cover for my job and lifestyle?
Whether you're self-employed, a contractor, or in full-time employment, the right policy should reflect how you earn, how much you earn, and how stable that income is. With income protection there are lots of options depending on your own individual circumstances and we can match you with the most appropriate plan.
There are over 6,000 occupations covered by income protection across different risk levels ***
5. How much does peace of mind cost?
This really is the most important question to ask yourself. Income Protection might be more affordable than you think and when you consider the cover it provides, it’s priceless. Premiums vary based on age, health, job type, and level of cover but it's more about protecting the lifestyle you've worked hard to build and those you’ve built it with.
Your income is your greatest asset. It's the one thing that pays for everything else. So why wouldn’t you protect it? At Searing Point Wealth Management, we’d be delighted to help you understand which products and options suit your individual circumstances the best. Just contact our team today and together, we can develop a plan that supports your objectives for today, tomorrow, and the future.
Source: *Aviva / ** Revenue.ie / *** RoyalLondon
