MAKING NEWS

Mon, 19 October 2009
Income Protection Insurance for Self employed and unemployed
Now is probably the best time to take out income protection insurance as premiums are only set to rise as the world economic situation worsens.So with the expectation that unemployment will rise to more than three million this year it is probably best to get your skates on if you think that you may be in danger of losing your job.

Sometimes this type of insurance is also called unemployment or redundancy insurance but it is basically a guarantee that you will receive money to cover you for up to two years, depending on the policy, if you lose your job though no fault of your own.Obviously, with such well established companies such as Wool worths and Principles packing up, most people are a little nervous about the security of their jobs.

Over the past few years income protection has gained popularity with the rise of temporary and short term contracts - leaving the notion of a job for life behind- so employees need a safety net to catch them if they fall.Redundancy can happen out of the blue and is more prevalent during this downturn but bills do not stop so how would you manage if this happened?

This is where income protection can offer real protection for a set time period of one to two years depending on the insurer, as it will mean, for a small monthly premium, that if you do find yourself without a job you have at least a year’s grace while you look for another one.Suffering an accident or being on long term sick could also mean you will find yourself stressing about bills but this would be covered through income protection insurance.

Depending on personal circumstances and the level of cover you require, premiums can cost between £12 and £36 a month.Most policies will pay out between 60 to 90 days after you become ill or are made redundant, some will even back date it to the first day you found yourself out of work.

Finding the best policy for you will require a bit of homework and research. One of the best places to find a range of independent specialists, which generally offer cheaper quotes than banks, is on the internet. That way you can compare prices and features of policies so you can choose the best one for you and get a good deal.

There are also 'age related' policies which don't calculate your premium according to gender, occupation or whether you smoke. These may be more suitable for higher risk lives.

There are also 'budget' income protection policies which pay out for shorter period therefore have lower premiums. Always read the small print in any policy to make sure it is exactly what you need and that you are indeed covered for unemployment, accident or sickness.Now is a good time to think about whether you need to take income protection out to guard against any future trouble and acting now rather than later could save you money in these uncertain times.

James Roy is Insurance advisor of Holiday Travel Insurance UK.For any queries related travel insurance, annual travel insurance 90 days, travel insurance for pregnant women visit http://www.holidaytravelinsuranceuk.co.uk



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