Protect your earnings
Your ability to earn an income is the most valuable financial asset that you have. Your income repays your mortgage, covers your bills and supports your family and lifestyle.
What would happen to your finances and quality of life if this income were lost?
There are several ways you can protect your earnings:
- Income Protection Cover – This is the main one for directly protecting your earnings. If you suffer from a long-term illness that prevents you from using your skills to earn a living, this policy will help replace a good part of your lost income, allowing you to continue with your life until you’re healthy enough to return to work, or retire.
- Accident, Sickness and Unemployment Cover – Similar to an income protection policy, but offering short-term cover up to 1 year rather than longer-term insurance, this policy will replace your lost income if you are unable to work due to redundancy, or if illness, sickness or injury prevents your ability to work.
These are the main policies for protecting lost earnings. However, there are other ways to view loss of earnings, such as if you suffer a critical illness or pass away while still in your earning years. These risks can be covered with life insurance or critical illness cover, which can be provided as a lump sum, or via a replacement income using a family income benefit policy.
There are many types of policies available from separate providers, all with different terms and features. You are also likely to have some protection via your existing employment, and you may already have some policies in place.
Its important to look at your protection needs in detail to ensure that you have the right type and level of cover in place.