Losing your income can cause major financial upset. However, there are policies which are designed to protect your income in such situation, giving you peace of mind.
If you were to become unable to work due to an accident or illness, these policies are designed to replace a proportion of your income. There are also policies available that will cover you, it you are made redundant although these will cost more. Long-term income protection will cover you until you reach retirement, while shorter-term income protection policies are cheaper and will only pay out for a set period of time.
Mortgage payment protection
This will cover your repayments for a certain set period. These are generally for up to two years if you were to lose your job or have an accident or illness which leaves you unable to work.
Critical illness cover
This pays out a lump sum if you develop one of a range of serious medical conditions listed in the policy. The conditions covered are very specific and normally include certain types and stages of cancer, strokes and heart attacks, but each policy is different. It can be bought alongside life insurance or separately.
Published September 2019.
It is important to take professional advice before making any decision relating to your personal finances. Information on this page is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for information purposes only.