Why take out an income protection insurance policy? There are plenty of benefits to an income protection insurance (IPI) policy; in this post we'll take a brief look at five specific benefits.
1. Unlike ASU and critical illness cover, IPI lasts for the long-term.
What would happen if you got into a car accident later today and found yourself paralysed for the rest of your life? Would you be able to keep your job? Would you require round-the-clock care or at least part-time help? How many years would it take for you to become independent again?
Critical illness cover won't help in a case like this, and ASU policies will only last for a year or two. IPI benefits will last for 25 to 45 years – quite possibly you will be covered for the rest of your life.
2. IPI benefits are usually higher.
Most IPI policies will have a higher payout than ASU protection. Of course, higher payouts over a longer period of time will mean higher premiums, but the additional coverage is worth it.
3. Critical illness cover does not cover mental illnesses.
Critical illness cover is great if your family is at risk for heart attack or stroke, but what if bipolar disorder runs in your family? Should you find yourself incapacitated by clinical depression or other mental health issues, critical illness policies will not help you. To care for yourself during bouts with mental illness, you need IPI.
4. Critical illness cover does not cover musculoskeletal conditions.
If you throw your back out at work and find yourself unable to perform your job for a long period of time, you're out of luck if you have critical illness cover. Although cancer, stroke, and heart attacks are covered by these policies, back problems and other musculoskeletal conditions are not. They are covered, however, by IPI policies.
5. IPI benefits are far better than government benefits alone.
Consider that a Jobseeker's Allowance offered by the British government is a scant £260 per month. By comparison, most IPI policies are at least 50% of your regular monthly income.
These five benefits of an IPI policy are just a few of the advantages to getting covered. A whopping 93% of Brits have no extra insurance at all should they find themselves with some type of serious illness; the overwhelming majority of people rely solely upon the government for support and protection.
While government protection is helpful, it often does not go far enough for many individuals. Rather than relying only upon the government for protection, consider what would happen to you or your family should you become unable to work for a protracted period of time. In such an instance, you could certainly benefit from the peace of mind and financial support offered by an IPI policy.