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Is income protection insurance worth it?

is income protection insurance worth it

The coronavirus pandemic has forced many people to take a closer look at their finances - and in particular, how they can protect their income due to the sudden increased risk to their health. In this post, we'll be answering the commonly asked question; is income protection insurance worth it?

What is income protection insurance?

Income protection insurance is a type of insurance policy which is designed to provide support in the form of regular monthly payments if you find yourself unable to work either due to illness or injury. It will usually replace a proportion of your income until you either return to employment, retire, die or end the policy.

Income protection insurance: The key facts

  • Both short and longterm policies are available. A shorter term policy will normally have lower cost monthly premiums.
  • Income protection payments are tax free
  • It provides peace of mind that you'll be financially secure even if you find yourself unable to work
  • Payments start after an agreed deferment period - this will usually be after your sick pay ends. The longer you defer payments, the lower your monthly premiums will be
  • You can claim as many times as you need to for the duration of your policy (although there are restrictions on the time allowed between claims)
  • Payments will be a percentage of your salary (usually around 70%)

5 Signs

it's time to get life insurance

So, is income protection insurance worth it?

According to the Association of British Insurers, around one million people find themselves unable to work due to illness or injury every year. This year, coronavirus has led to even higher numbers of workers being forced to take time off.

If you were suddenly unable to work for an unknown period of time, would you be able to cover your household bills? If the answer is 'no' - or even if you're not sure, then it's worth getting some advice about whether income protection insurance is a sensible option for you.

Here at BB Mortgages, we offer completely free consultations with one of our expert advisers and it can all be done via video call and email so you don't have to worry about putting yourself at risk or breaking social distancing rules.

Who doesn't need it?

Of course, there are a few instances where income protection insurance probably isn't worth it for you. For example:

  • If your employer provides longterm sick pay
  • If your savings can cover your income
  • If you're able to take early retirement
  • You can cover your costs through government benefits

How much does it cost?

Your monthly premium costs will depend on a number of factors such as your age, job, medical history and, as mentioned above, how long you choose to defer payments. To make sure you get the best deal available for you, we definitely suggest you speak to an expert. 

Don't forget that BB Mortgages are offering free consultations so if you're considering income protection insurance, make sure you get in touch to book yours!

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Ellen King

Absolutely delighted with the service we received from Dean. The advice we received was timely and thorough; the service provided went above and beyond our expectations compared to other mortgage advisors we have used in the past and the whole application process was made straightforward and stress free. Overall, an excellent value for money service that I would highly recommend.


Ellen King

BB Mortgages
2019-09-04T15:53:10+01:00

Ellen King

Absolutely delighted with the service we received from Dean. The advice we received was timely and thorough; the service provided went above and beyond our expectations compared to other mortgage advisors we have used in the past and the whole application process was made straightforward and stress free. Overall, an excellent value for money service that I would highly recommend.

Miss Knight

We would like to take this opportunity to thank you for your efforts in making it possible for us to purchase our first property.  You have been brilliant and your services have been friendly, helpful, swift and professional.  We cannot thank you enough and it has been an absolute pleasure working with you.  What is known to be a stressful time has been very smooth and I have yourselves to thank for this.


Miss Knight

BB Mortgages
2016-03-22T17:24:36+00:00

Miss Knight

We would like to take this opportunity to thank you for your efforts in making it possible for us to purchase our first property.  You have been brilliant and your services have been friendly, helpful, swift and professional.  We cannot thank you enough and it has been an absolute pleasure working with you.  What is known to be a stressful time has been very smooth and I have yourselves to thank for this.

Mr L

Mr L hadn’t sold his house but had found the house of his dreams, we arranged a mortgage that allowed him to buy his new house without selling and a mortgage that was flexible enough for him to pay a large amount off when he sells his house.

BB Mortgages
2016-09-13T12:38:09+01:00
Mr L hadn’t sold his house but had found the house of his dreams, we arranged a mortgage that allowed him to buy his new house without selling and a mortgage that was flexible enough for him to pay a large amount off when he sells his house.

Miss G

Miss G sold her house and had found a new house, it all looked straight forward but she had a historical bankruptcy which meant lots of lenders were declining her. We found her a mainstream high street lender that would offer a mortgage even with her previous bankruptcy.

BB Mortgages
2016-09-13T12:43:22+01:00
Miss G sold her house and had found a new house, it all looked straight forward but she had a historical bankruptcy which meant lots of lenders were declining her. We found her a mainstream high street lender that would offer a mortgage even with her previous bankruptcy.

Mr W

Mr W works abroad but wanted to buy a buy to let property, most lenders will require him to own and live in in a mortgaged property in the UK, however we found a lender that would lend at sensible interest rates for a new buy to let purchase.

BB Mortgages
2016-09-13T12:48:10+01:00
Mr W works abroad but wanted to buy a buy to let property, most lenders will require him to own and live in in a mortgaged property in the UK, however we found a lender that would lend at sensible interest rates for a new buy to let purchase.

Mr C

Mr C wanted to buy a student house in Lincoln via a limited company to take advantage of the income tax benefits of this. He spoke with other brokers and high street lenders all of which said it wasn’t possible. We found a building society who specialise in this with sensible fees and interest rates.

BB Mortgages
2016-09-13T12:49:06+01:00
Mr C wanted to buy a student house in Lincoln via a limited company to take advantage of the income tax benefits of this. He spoke with other brokers and high street lenders all of which said it wasn’t possible. We found a building society who specialise in this with sensible fees and interest rates.
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BB Mortgages

Meet Dean;⠀

Dean joined BB Mortgages in April 2017 following time in the financial services industry with The Nottingham Building Society and Yorkshire Bank. ⠀

He qualified as a mortgage advisor to help clients buy their home with the knowledge they would receive great advice and service that Dean prides himself on.⠀

Outside of work, he enjoys spending family time with wife Sarah and son Harry on days out and holidays. He is also a season ticket holder at Nottingham Forest which isn’t always an enjoyable pastime!⠀

Dean would LOVE to talk anything Mortgage-related and would be happy to answer any of your questions, so feel free get in touch today!⠀

Simply visit the link in our bio to find our contact details!
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