Illness or accident can have a disastrous affect on the home, especially if the breadwinner has a family to support, and even worse if they are in debt. Rent or mortgage payments, credit card debt, car repayments and other expenses still have to be met when a person is disabled and the income ceases. Self-employed individuals, particularly, have the greatest need for income protection to ensure a disability does not result in them losing their income. Insurers have responded with policies that insure not only the self-employed person's income but their business overheads as well. Even if you are employed you still need income protection.
Many people insure their home and car.
However their income, an asset potentially worth millions of dollars over their working life is often left uninsured. Income Protection was created to fill this gap. Over the past decade it has been one of the fastest growing insurance products throughout the western world. The definition of disability is vitaI when considering Income Protection as this will determine whether or not the insurer will pay the claim. Therefore, pricing isn't the most important factor when searching for the right income protection policy.