Life is unpredictable and while we can’t control every outcome, we can control the kind of cover we have in place when the need arises.
Income Protection or Income Insurance is designed to protect you against loss of earnings if you become ill or injured and unable to work. It works by providing you with a set percentage of your income, after a deferred period. This ensures that even with life’s inevitable curveballs you can always have peace of mind and maintain your standard of living even when you are unable to work and earn an income.
Serious Illness insurance pays you a tax-free lump sum if you are diagnosed with one of the serious illnesses or disabilities that your policy covers. It is also known as specified illness cover as it only covers a specific list of illnesses, usually around 45, but this will depend on the policy and who is providing it. The payment is often used for things like paying down a mortgage or retrofitting the home to fit in with your new way of life. It would not replace your income, however, it doesn’t require you to be out of work for a certain amount of time.
For more information on serious illness coverage and income protection, get in touch with us at info@ppsfinancialpanning.ie
Check out our Financial Planning Services Tips:
Are you doing your bit for climate change?
Some plain talking – investment terms uncovered
Living Benefits – backing the protectors
Are You Seeing Enough of Your Kids?