Last week I dedicated my Blog to the question of how critical it is to take up an income protection insurance with your mortgage. Whether I convinced you or not, the recent referendum has presented us with a new situation requiring further consideration.
Though I have been accused of being ‘The Daily Mail Blog’ before it is not my attention to add to the doom and gloom speculations or create panic among my readers. However, post Brexit reality is such that we have entered a period of uncertainty which could last some time. This means that markets are more susceptible to sudden changes and this needs to be addressed by home owners.
Do you remember my cash machine analogy from the last Blog? Well, consider that the risk to your cash machine just got greater so the need to insure it is more prominent. The fact is that in situations of uncertainty it makes sense to take steps which gives us piece of mind and help us deal with things better.
So what Income protection insurance should you consider?
Unemployment insurance, also known as redundancy insurance, is a short-term income protection policy providing cover for up to 12 months should you be unable to work due to involuntary redundancy. It can be used to protect things such as your income, mortgage payments or loan and credit card repayments. You choose how much you receive as a monthly benefit, bearing in mind that you can typically protect up to 65% of your gross annual income (payouts will normally be tax free).
This type of insurance policy can provide a suitable solution to current market uncertainty and give you a ‘just in case’ cover ensuring that you and your family are safe. There are, of course, many other options which might be more suitable in individual cases. You can read more about the type of insurances available to you here. Should you need some advice I am always happy to speak with you so get in touch.
Payment protection insurance is optional. There are other providers of Payment protection Insurance and other poducts designed to protect you against the loss of income