What’s the difference?
One difference between Income Protection and Life Insurance is that Income Protection is designed to help your family support you when you aren’t there. Income Protection, however, is a policy that protects you throughout your life if you are injured, sick, or disabled or need assistance paying your mortgage.
What is Life Insurance?
Life insurance is a policy that protects your loved ones and family in the event of your death. If you worry that your family will not be able to handle the financial burden of a death, you can use this policy to provide financial assistance. What is Life Insurance?
If you die within a set period of time, typically 25 years, it provides your family with a lump sum. This money can be used to pay off your mortgage, to pay inheritance tax, or to help you with childcare costs or any other financial obligations that your loved ones might have. Different Life Insurance Policies. A policy that pays a monthly income can be chosen instead of a lump sum. This can help you to supplement your income and replace lost income. There are many types of Life Insurance that can help you protect your assets in different ways. The ‘Whole of Life’ insurance protects you for the entire duration of your life. However, it is more costly but can help protect your assets against Inheritance tax. Term insurance is what most people buy. It covers you for a specific time.
What is Income Protection?
Income Protection insurance is available that will ensure you have enough cash to cover your bills and expenses in the event of an unexpected or serious accident. This insurance is for you if you are in an accident, unable to pay your mortgage, or have been laid off due to illness. Redundancy cover. Three types of Income Protection coverage are available: Redundancy, Accident and Suicide and MPPI. In the past few years, Redundancy has been a major concern for employees. It was 2.68 million people who were made redundant in 2012. This means that there is a sudden loss in income for most people. Redundancy policies can help you protect yourself against these and provide support in times of crisis.
If you’ve been with the company for a while, you may not need to insure accident and sickness. However, you may get a payout from your employees at the time you are laid off. This doesn’t necessarily mean that it will cover you for several months without a job.
Insurance for accident and sickness.
The policy covers you in the event that you suddenly become ill or are injured in an accident. This policy gives you the opportunity to heal from trauma without having to worry about financial consequences. This policy is not a long-term solution. You might also want to consider critical illness coverage to help you. It continues to provide support if you become ill and are unable return to work. This policy can be made to work out less expensive if you have an employer that has a good plan for your accident and sickness. In this case, you would not need to take out the Redundancy insurance. MPPI is Mortgage Payment Protection Insurance. It helps you to keep on top of your mortgage payments so you don’t get behind. This can be a great way to protect yourself and provide cheap protection. It works like this: The insurance company pays the money directly to you. However, it is your responsibility to pay the mortgage lender with that money so that you don’t fall behind.