Income Protection

Do I need Income Protection

Income Protection is the first insurance you should take out. How can you pay for any of your other outgoings without an income?

The truth is that, without your income, or perhaps your partner’s income, you will almost certainly struggle, especially if you go without an income for more than a few months.

Homemakers can also get cover, because although they may not actually earn an income, they do make a valuable financial contribution to the household by caring for children and looking after the home.

If you’re a home-maker (or your partner is), just think what would happen if you were sick or disabled. Who would look after the children? Who would look after the home? Chances are you’d have to pay for some help, or your partner might even have to give up work to support you. Either way there will be a financial impact, this is why home-makers should also have Income Protection.

The reason we believe everyone should have some form of income protection is because the State benefits system does not provide enough if you are unable to earn. You are far more likely to be unable to work due to illness than to die, which is why we feel income protection is more important to have than life cover. Some employers will pay you while you are sick so you should check the details before applying, but if your employer does not, or you’re self-employed, Income Protection is essential.

By using Foundation Mortgages, we will ensure that you only have the cover you need, or is most suitable given your circumstances.

What is Income Protection

Income Protection is the most crucial and flexible insurance as it is designed to replace your income if you are unable to work due to illness or disability.

Your most valuable asset is the ability to produce an income and this should always be protected.

Types of Income Protection

Type of income protection

Description of cover
  • Income Cover for   Sickness
 The policy pays out a monthly benefit if you are unable to work   due to injury or sickness. They will usually pay out until you have   recovered, retired or reached the end of the contract term, whichever occurs   first.
  • Income Cover for   Redundancy
 The policy pays out a monthly benefit if you are made redundant.   They will usually pay out for either 1 or 2 years.
  • Budget Income Cover   for Sickness
 The policy pays out a monthly benefit if you are unable to work   due to injury or sickness. They will usually pay out for a fixed period such   as 2 years, rather than until retirement age.
  • Accident, Sickness   & Unemployment
 This is a short term policy which will pay a monthly benefit,   usually limited to approximately 125% of your mortgage payment, for up to 2   years.

These plans have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.

 

Simply visit our contact page and we will call you to discuss your mortgage and or protection requirements.

The levels and bases of taxation and UK interest rates are subject to change.

The guidance contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK. Principal: Peter Martin Dronfield.