Benefits of income protection include:
- Tax deductible with up to 40% being claimed back at the end of the year.
- Prices are fixed when you start. If you develop an illness later on in life, your premium will not increase.
- Security of income for you and your family.
When working, you have a salary. What you earn pays the household bills, keeps a roof over the head and gives you a holiday to enjoy.
Other costs come down the line, too, like education, medical bills, and all those extras for the children.
What happens when you are unable to work? Sick pay may cover your salary for a while. State illness benefits only barely cover the basic costs of living. Soon sick pay will dry up and your monthly income quickly hits a wall.
Having money when needed, is why you take out an income protection plan.