How do I protect my income?

Looking at your overall financial picture, your income is often your biggest asset. If you are reliant on your own ability to earn money then a long term illness or disability could be devastating to you and your family.

There are a number of options available if you wish to protect this valuable asset:

Short term cover for your mortgage

Accident Sickness and Unemployment cover (ASU) provides you with an income to meet your outgoings if you were off sick or made redundant. Typically ASU would only cover your mortgage and associated expenditure for up to two years and you would need to wait for a period of 30-90 days in order to make your first claim.

Longer term income protection

Income protection or permanent health insurance (PHI) is the only plan that can provide true protection right up to your retirement date.  You can take cover which increases before and after you claim to keep your income in line with inflation.  You can choose what age you wish the income to stop.  You may think that you would want the income to go on until an old age, but remember the longer you cover for, the higher the premium will be.  With these plans there is often compromise, but it is always worth having some cover than none at all.  Your adviser can help you find the right balance of cover and premium for you.

As with all plans income protection should not be bought in isolation and should be considered as part of a protection package alongside existing plans and employment benefits.