It is vitally important that you ask yourself what would happen if your income stopped in the morning. Would you be in a position to repay your mortgage or the household bills?
This type of protection is designed to protect your income should you be unable to work through illness accident or injury. You can protect up to 75% of your income and most importantly obtain tax relief at your highest tax rate on the monthly policy premiums.
It is probably one of the most forgotten types of cover yet one of the most important.
Cover is available on an individual basis or part of a pension arrangement. The cost of cover depends on the level of cover required and your occupation.
It is important also to remember that:
- Your employer is not obliged to provide sick pay in the vast majority of situations. It is usual that sick pay is provided for 6 months and after that dependents will have to rely on State Benefit
- Public sector employees receive full pay for 6 months and half pay for the next 6 months
- Self employed individuals are not entitled to any benefit