To put it simply, income tax protection is a policy that pays out if you’re unable to work for any medical reason – physical, mental, illness or injury.
The idea here is: to protect you financially for a long time in case of any unexpected financial loss of income. It provides you with a regular income – preventing you from having to use up savings, take on debts, depend on someone else or significantly change your lifestyle if you’re unable to work because of illness or injury.
So the question stands: What does it cover?
A physical or mental health problem that stops you from being able to work or earn money leaves many people struggling to keep up with the everyday cost of life. To bridge the financial gap during this time, they usually rely on two different sources of income:
Rely on sick pay
Some can rely on sick pay to meet the financial gap for a shorter period of time. This could be the employer’s sick pay (which typically ranges between 13 to 26 weeks)or statutory sick pay. But what happens if you’re unable to work for a longer period of time? And what happens if your company doesn’t have a sick day policy?
Rely on savings or other assets
In the same way, some people will rely on savings or other assets for financial support. But would that be idle? Because resources are finite. And what happens if you’re unable to work for an extended period of time?
Yes, these are some of the alternatives at your disposal, but there’s a ceiling on how long they’ll last. They will help you sail comfortably for a period of time, but not for long.
This is where income protection comes into the picture. It not only provides you with a financial cushion for a much longer time but also a cheaper way of protecting yourself in the long run than it is to build up savings yourself. Your savings and assets will be intact while you have your income flowing.
How To Choose The Right Income Protection
Choosing the right income protection insurance isn’t easy. It’s essential to weigh up the pros and cons and consider different policy settings to wrap your head around. However, the peace of mind and the financial security income security planning can bring to your life are invaluable if you’re unable to work due to illness or injury. However, doing the income security planning all by oneself can be daunting. You don’t want to make a mistake while protecting yourself financially. That’s why getting help from financial advisors can be valuable!
At Money Maximising Advisors Limited, we help people make the right decision when choosing their insurance for Income protection Cork. Our priority is simple: making sure our customers choose the right cover for themselves without spending more than what’s needed.
Speak with our advisors to receive income protection insurance advice Cork.
Talk to us at +353 91 393 125
Mail us at firstname.lastname@example.org
Or visit our office at Unit 3, Office 6, Liosban Business Park, Tuam Rd, Galway, Ireland