It’s income protection awareness week - let’s talk about it!

In the world of life insurance, this whole week is dedicated to income protection, arguably one of the most important types of life insurance out there.

But if it’s one of the most important types of life insurance then why does there need to be an awareness week dedicated to it? Keep reading to find out why and learn more about what this type of financial protection can do for you.

What is income protection?

It does exactly what it says on the tin!

The objective of this type of life insurance is to make sure your funds wouldn’t take a big hit if the worst were to happen to you. Put simply, income protection will pay-out regular monthly payments if you weren’t able to work as normal due to illness or injury.

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How does it actually protect your income?

This type of cover protects your income by paying out monthly bursts of money so that you can stay afloat during a tough time.

When you arrange your income protection policy with the team here at Caspian, we will recommend the amount of cover we think is best suited to your circumstances. With an income protection policy, the amount you’ll be covered for will equate to a selected percentage of your income - most providers will cover up to 60% of your monthly income!

Why is there a whole week dedicated to this cover?

Essentially, the point of this week is to raise awareness of just how essential this cover is (especially in this day and age) and if you’ve made it this far through the blog, we hope you’ve learnt a thing or two.

Not only does this week promote the importance of income protection but it’s also a chance for people like us to help people learn more about what this cover can do for them.

Does income protection ever pay-out?

YES (hell yes!)

We’re just going to let the figures speak for themselves on this one… A great example from just this year represents this, leading life insurance provider, LV=, paid more than £5.4m in income protection and personal sick pay claims between January and April 2022.

What’s the main benefit of this cover?

One of the top benefits of income protection is that once your cover has initially paid out, your policy could pay-out again in the future. Which is a bit different from your standard life insurance policy which will end once you’ve or a loved one has made a successful claim on it!