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Income Protection Insurance
What would happen if you suddenly lost your job? What would it mean for you and for your family? While losing your job may seem like a very unlikely possibility, life can be unpredictable. People lose their jobs every day, and many of these individuals never saw it coming. You might think that you can keep unemployment from happening by being the best worker you can. Even if you’re that employee who always offers to stay late, who is always on time, and/or who has the most education and experience, you can still get fired or laid off; it’s just a fact of life, especially with so many employers downsizing in an effort to save money. Don’t just assume you won’t ever lose your job. Instead, prepare for the worst and hope for the best.
Your Savings Account Isn’t a Surefire Backup Plan
Many people think of their savings accounts as an “insurance policy” against unexpected unemployment. They think, “I’ll just live on my savings until I can get another job; surely it won’t take long.” The truth is, however, that you have no way of knowing how long unemployment will last. Even the most qualified individuals often have difficulty finding work after being fired or laid off. Sometimes, there just aren’t positions available, and sometimes the competition just proves too steep. Whatever the case may be, if it takes you a while to find employment, your savings could run out long before you ever land a job, and then what would you do? Plus, it’s really never a smart idea to deplete your entire savings. This is why having income protection insurance from British Insurance is such a smart idea.
How It Works
British Insurance actually offers several different types of income protection. Different types of income protection cover different areas of your life. Basic income protection insurance is coverage that will provide you with necessary funds if you lose your job. The money you will receive once you have filed a claim can be used for just about anything you need; after all, it’s your money. You could use it toward paying the rent on your flat, buying food and other necessities, paying utility bills, paying council tax bills, and more. When it comes to income protection insurance, UK residents can also opt for mortgage protection and/or loan protection. Mortgage protection can help you to cover the cost of your mortgage payment, home insurance, and other relevant home and/or mortgage related costs in the event of unemployment or other extenuating circumstances and is really a must for homeowners. Loan protection, on the other hand, can enable you to continue paying your creditors and can help you to avoid falling into even more debt in the event that you lose your job or go through other unexpected events that cause you to fall behind.
It is important to understand that, in most cases, none of these types of coverage will go into effect if you voluntarily quit your job. You either have to be laid off or fired to receive your coverage. Those who have an income protection plan will be required to provide details and proof of their unemployment in order to start receiving payments, so don’t use a good income protection policy as an excuse to quit your job.
While it’s always wise to secure income payment protection insurance, keep in mind that being fired or laid off aren’t the only events that could leave you in a bind if you’re unprepared. Consider, for example, what would happen if you had an accident on the job or even outside of work that rendered you incapable of returning to work for an extended period of time. Likewise, what would happen if you suddenly fell ill and couldn’t work? Since there are risks other than simply being fired or laid off, it’s best to prepare for other potential happenings as well. The best case scenario is that you will have accident and sickness coverage in addition to unemployment coverage. Of course, however, you can pick and choose the types of coverage that you need and that work with your budget.
No matter which policy or policies you choose, you will also be required to decide upon an “excess period.” The excess period is the amount of time you must wait to start receiving your first payments in the event of unemployment. Obviously, the longer your excess period, the lower your insurance cost is likely to be. Unfortunately, though, a longer excess period means a longer time you have to spend waiting on payments. You can choose excess periods between 0 and 180 days in length, but keep in mind that you have to wait an additional thirty days to receive your first payment, no matter what the length of your excess period. So, for example, a 0 day excess period actually means you’ll be waiting thirty days to receive funds, while a 30 day excess period means you’ll be waiting sixty days. Just be realistic about your budget and, for best results, go with the longest excess period you can afford.
Setting Up Your Policy
Obviously, it’s important to have income protection insurance, but it’s also important for you to get that insurance at a price that works for you. To give you an idea of what different policies and options will cost, you can request a free income protection quote from British Insurance. British Insurance does its best to offer all clients the lowest possible rates on quality coverage and is so committed to that goal that you are actually encouraged to compare income protection insurance rates from other providers. Keep one important thing in mind as you look over each income protection insurance quote that you receive: cheaper doesn’t always mean better. When you’re on a budget or even when you’re not, it can be very tempting to just go with the cheapest policy you can find without really paying attention to what it offers you. It’s always a better choice to pay a little bit more for your insurance and to get far better coverage than it is to pay next to nothing and get…well…next to nothing in terms of actual protection.