It’s when you need to make a claim that you realise just how wise investing in health and medical insurance can be.

If you’re unable to work because of illness or injury, Income Protection Insurance is designed to provide you with a regular tax-free monthly income.

The maximum amount of income you can replace through insurance is broadly the after-tax earnings you have lost, less an adjustment for state benefits you can claim. As with all insurance, it is important that you have the right type of policy that provides all that you need it to do for you.

Long-term income repayment policies usually come into play between the time when your employer stops paying sick pay, and when you collect your pension.

Shorter-term policies tend to be used to protect a mortgage, bank loan or other payment. These usually commence within a few weeks but stop entirely after 12 months or 24 months. To clarify, Income Protection Insurance only applies to products that pay you an income if you become unable to work due to sickness or injury. Policies to protect mortgages, loans or credit card debts are often called Accident & Sickness policies.

At Blestium Financial Services, we can help find the right protection for you, get in touch to find out more.