UK income protection insurance is fast becoming a sought-after type of assurance. Why INCOME PROTECTION? Basically income protection insurance replaces part of an individual’s regular income if they are unable to work because of long-term illness or disability. There is an agreed waiting period before claim payments are made, as many employed people will continue to receive their regular income for the first few weeks or even months that they are off sick. The income then continues until the policyholder is fit to return to work, or until the policy ends, generally at retirement age.
Income protection insurance should not be confused with accident, sickness and unemployment cover (ASU). It appears that the working culture of the population is changing and is therefore creating the need for ASU insurance. The trend is towards smaller companies. The days of “employment for life” with a company is quickly disappearing. In general people now change their place of employment on numerous occasions throughout their working lives. This trend has tended to change the attitudes of employers with regards to employment contracts. In the United States it is now becoming fairly common practice to employ people on fixed term contracts. The fixed term contract is basically a contract for a set period, normally five years. Once this contract expires the individual needs to either renew this contract or seek alternative employment.
Not only is there a trend to this change in attitude by employers, there is also a growing number of individuals who work from home and are self employed. With the development of the Internet, it is now possible for this type of work ethic to become a reality. As travelling becomes more and more congested and time consuming, so are companies allowing individuals to work from home as a full time employee.
The downside to these trends is the real possibility of becoming unemployed and in the case of self employed individuals the real problem of becoming hospitalised and being unable to earn a living. This is where the accident, sickness and unemployment cover comes into its own. The insurance ensures that the individual continues to receive a regular income for a limited period, usually 12 months, if they become unemployed, or are unable to work because of an accident or illness.
This is the first type of insurance policy one would consider before considering to become self-employed. Being self-employed, when starting is extremely hard, time consuming and stressful. Should one become ill as a result, without accident and sickness insurance, the problem becomes even larger. It is also essential for individuals working on fixed term contracts or individuals that work in industries that are prone to redundancy layoffs etc.
The second type of insurance that one needs to get especially when self-employed is Life Insurance so that your family is protected if disaster happens to you. Talk to the Guys at your local Pioneer Life Insurance office to see what deal they will offer you.