Income protection provides for you to continue receiving an income, if injury or illness leaves you unable to work. You may not even be aware of it, but it is quite likely that your former employer offered you income protection as a core benefit. On leaving that employment however, premiums will cease and so will your cover.
Should I replace my income protection?
The case for replacing your income protection is likely to hinge on 3 factors. First, you will need to be entering new employment or generating an income from self-employment to purchase income protection. Second, you should check whether your new employer offers income protection as a core benefit. Finally, you need to consider affordability.
If your new employer does not offer income protection or if you are becoming self-employed, it may be very important for you to purchase income protection. In fact income protection may be even more important than life insurance, since injury or debilitating illness are considerably more common than premature death.
You should note that income protection premiums qualify for tax relief.
Income Protection Costs
If you commence a new income protection policy, this is likely to be paid for by a monthly premium. The more cover you require, the higher that premium will be. Other factors that will influence the level of premium will be your general state of health, your age and whether or not you are a smoker.
Mercer can help
Mercer can readily assist in replacing your income protection cover if you are leaving or have left employment. Mercer has carried out extensive comparisons of insurance providers and is proud to offer you best-in-market insurance.