Protection for your Money


protect your moneyIf you’ve spent your whole life working and have some money set aside for retirement, you won’t be alone in doing that. It’s important to have something to fall back on when you’re finally ready to quit work, and you want to be able to provide for yourself and those you love even if you no longer have the regular income that comes with being in full-time employment. While this is generally seen as a sensible thing to do, all that hard work you’ve put in could be undone in an instant.

Should you get injured or seriously ill, there’s a chance that you may have to leave your job, leaving you without a regular source of income. You could rely on any savings you may have, but if they’re not enough to help you and your family cope, what can you do about it? There are a few avenues you could explore, like trying to borrow money and then pay it off when you’re ready to return to work or asking friends and family for money, but those methods aren’t always fruitful.

Begging family members and friends for money to keep you going can be humiliating, while banks and building societies can sometimes be a little cold towards customers who need loans, even if they have a good credit rating. Fortunately, to help guard yourself against such a scenario, there is a form of insurance you could take out that will help to tide you over while you recover from illness or injury.

Income protection insurance like that advertised on lifeinsurance.org.uk could help to at least partially plug any temporary income gap left by having to leave work. How it works is that, by taking out an income protection insurance policy, it will pay out if you become injured or ill and have to cease working for a few months or so. It will consist or regular payments equivalent to a proportion of your usual level of income.

This type of insurance will keep paying out until you return to full health, meaning that, as long as you pay for it regularly, you will have some form of safety net to fall into if you need it. However, you should make sure that you have sufficient proof of your injury/illness and how your finances have suffered as a result. If you have this evidence with you when talking to an insurer, then you’ll be able to receive a lump sum payment from your insurer.

Having income protection insurance is vital for yourself, as well as your family if they depend on you to provide for them. It’s important to guard yourself against something unfortunate happening to you, especially if it impairs your ability to work and earn money to help pay the bills and put food on the table. By taking out an income protection insurance policy, you’ll be able to do that whatever happens to you, while you won’t need to go cap in hand to your bank or loved ones.

photo by free-stock

Written by Jon the Saver

This post was written by yours truly, Jon Elder. My mission is to help you succeed in your personal finance life. Join me on the journey to financial freedom! You can subscribe through RSS FEED or EMAIL updates. You can also find me on TWITTER
and FACEBOOK
. Happy investing 🙂

Jon the Saver

This post was written by yours truly, Jon Elder. My mission is to help you succeed in your personal finance life. Join me on the journey to financial freedom! You can subscribe through RSS FEED or EMAIL updates. You can also find me on TWITTER and FACEBOOK . Happy investing 🙂

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