The rising cost of living is affecting pretty much all of us and at the moment it seems difficult to find any light at the end of tunnel.
Whether it’s energy prices, the weekly food shop or filling up the car at the petrol pump, incomes are being spread ever more thinly and it is understandable that most people are looking to cut costs where they can and avoid any new outgoings which might be viewed as a luxury or unnecessary.
However, as we move towards the end of the year and look forward to the next, it can be a time to reflect and, unsurprisingly, finances are almost always a priority.
For those who have a mortgage it is likely to be the largest monthly outgoing but even more importantly, we are talking about your home and this payment every month keeps a roof over you and your family’s head.
Whilst you have a regular salary then at least you have some comfort and peace of mind that the mortgage and indeed your bills can be paid. But what if, for whatever reason, you no longer had that regular income?
Life can be complicated, and we have no way of knowing what it has in store for us – and this is why insurance and protection exist.
Protection policies can come in many forms, from life assurance and critical illness to income protection, but there are options on the market which cover almost every eventuality.
Protection can provide you and your family with an element of security in difficult times, especially if a regular wage is no longer coming in and this is why a product such as Income Protection is of particular importance.
Firstly, it’s important to say that protection isn’t there to suddenly increase or grow your wealth but to simply maintain what you have in times of hardship as well as providing some security.
Income protection can be a vital element in your financial planning and is designed to provide support should you be off work due to illness or injury.
For most people, our salary or income is our most important asset as it allows us a certain standard of living.
The money you earn pays for your mortgage, car, day-to-day bills, credit commitments as well as school fees and regular costs.
The question is, if an accident or illness prevents you from earning a living, how you would you continue to meet these payments and commitments? And bear in mind, this period could exist for weeks or months or even years.
Even for those who have put away some savings for a rainy day can see this disappearing fairly quickly, particularly if you they have suffered a long term illness or period out of work.
An Income Protection policy will provide you with a monthly tax free income in the event of a claim which is normally a percentage of your income, albeit this will be dependent on any employer benefits and your individual circumstances.
Of course, there is a cost to this protection and no one should try and pretend otherwise and a range of factors can have an impact on this cost.
However, the key point is whether, especially in these most difficult of economic times, you can afford not to protect your income.
There are many different products and providers and not every product will be suitable for your circumstances so your first step should be to find a firm of independent mortgage and protection brokers.
A broker can find the right policy for you and ultimately provide the security and comfort we are all searching for.