With key agencies such as the Employment Bureau facing huge budget cuts, the British public can no longer rely on state financial support if they lose their jobs or became unemployed for a long term illness.
This makes it even more urgent that professionals in the UK become aware of the range of income protection that will avoid financial ruin if their regular income suddenly dried. This article describes some of the options available to those who have families and mortgages who want to ensure keeping the accounts of attention, even in the worst circumstances.
Income protection, also known as unemployment insurance or protection of life, is the name given to insurance products that provide payments to cover loss of income when a person loses their job or can not work for medical reasons.
These payments are intended to complement and not replace the money from the state in such circumstances, because despite what you may hear in the tabloids, state benefits only cover the minimum expenses. They are designed for you to put food on the table, but not to help pay off a mortgage face. This is where income protection is, by allowing you to pay the bills, keep the mortgage and generally goes something like maintain the lifestyle they have come to the above, therefore, “the protection lifestyle “in the name.
Not only can claim benefits with your insurance income protection, but if you lose your full time job, but still retain some once, you are still entitled to claim. Income protection is not a one size fits all products, but offers different solutions to meet all kinds of circumstances.
Nor is it restricted only to employees, as the policies of income protection are also open to entrepreneurs and freelancers. This means that if your business goes under, they also have the safety net of insurance payments to fall back on while they get up and start again.
Recent surveys show that more than half of UK households run out of savings in 4 months, if the primary wage earner was unemployed. Whether you are working in the public or private contract or self-employed, you owe it to their loved ones to ensure that provision is made, whatever the future might hold.
Finally, the most important income protection is that you should not delay in making policy. If your company is laying people off and your job is in jeopardy, it’s too late. Insurers do not cover individuals who are expected to lose their jobs in the near future, because it does not make financial sense from their point of view. Stay ahead of the game, shop around for the best policy, and then relax knowing that your financial future is as safe as it can be.