What are the benefits of income protection insurance?

by | Thursday 21st Nov 2019 | Mortgage Insights

What are the benefits of income protection insurance?

Securing your financial future means asking yourself some uncomfortable questions and being prepared for equally uncomfortable answers. The biggest question of all is how you and your family would cope if you were suddenly unable to work and earn a living. Some people will be lucky enough to have some money put aside for a rainy day, though even if you’re lucky enough to find yourself in this position, it’s unlikely your savings are bottomless. For most of us, though, life is a process of trying to live within our means and there’s not always a lot left at the other end to go toward creating a buffer should things go wrong. So what are the benefits of income protection

The good news is that there are insurance products on the market which you can fund while you’re earning, and which become priceless if you find yourself without an income for any reason.

Income protection insurance is a safety net that will ensure you receive a regular tax-free income to replace a significant proportion of your salary if you suddenly become ill and unable to work.

In most cases, your tax-free monthly income will equate to around 50% of your salary, but because it’s tax-free it works out at around 75% of your monthly take-home pay in real terms.

That should be enough to relieve the immediate pressure of meeting your critical commitments like the mortgage, credit agreements and utilities, even if it might mean reining in the non-essentials.

Assuming your circumstances qualify you to claim on your policy, your monthly payment will be a pre-determined, fixed amount and you can use it for whatever purpose you choose.

Income protection differs from mortgage protection insurance and critical illness cover – though you might also want to consider both of these products as well, either in place of or in addition to income protection.

And although it’s possible – and relatively easy – to buy income protection insurance online, we’d always recommend you sit down with a professional adviser to ensure you choose a policy that will best suit your needs should you ever be in a position where you need to claim.

If you’d like to explore your options when it comes to protecting your financial future, talk to one of our friendly advisers and see how we can help you get peace of mind for the working years ahead. There’s no obligation to buy from us, so you have absolutely nothing to lose.

Oportfolio Limited is an appointed representative of Primis Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority.

Your property may be repossessed if you do not keep up repayments on your mortgage.

Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295.

We're Here to Help

If you have any questions about UK mortgage news or or anything you’ve read then please get in touch. We’d love to hear from you.

As featured in

Understanding a Volatile Mortgage Market eBook

Download Our eBook

Join our mailing list and receive a link to our latest ebook, Understanding a Volatile Mortgage Market. 23 pages of practical insights to navigate the unpredictable mortgage landscape.

You Will Receive A Link To Your eBook Shortly!