01 Feb 2022
Income protection – how much do I need?
If you want to take out income protection insurance, you might be wondering how much cover you need. Understanding the amount you realistically require could result in cheaper premiums.
The first thing to understand is that income protection is designed to cover your essential expenses if you are unable to work due to illness or injury – not your full monthly income.
What makes the list?
Think about what would happen if you were unable to go to work. Which expenses would continue regardless, and which would cease or lessen? Expenses like your rent or mortgage, household bills and any outstanding loans are essential because they would still need to be paid even if you had no money coming in. Expenses like commuting to work, going out for drinks, or buying your daily latte, would stop for the time being.
How long do you need?
As well as how much you need, it’s important to consider how long you’d need it for. Some protection cover is designed to pay out for a fixed period, while other policies pay out for much longer. Short-term cover is likely to be cheaper, so only cover yourself for what you think you’ll need.
We can help you assess your insurance needs so that you only take out the cover that’s right for you.
Book your appointment to discuss your insurance needs here…