Income protection – Why it is a must for renters
Income protection insurance ensures that if you are unable to work due to an accident or illness, you will still be able to keep up with any monthly outgoings. In an ideal world, with rents being so high, you should try and save at least three months outgoings to fall back on in case of emergency. However, this is rarely the case as there is often not much left to save after you have paid your rent. This is where Income Protection comes in.
The insurance will usually pay between 50% to 60% of your usual income, tax-free, meaning you can cover bills, lifestyle costs and most importantly, rent, thus keeping a roof over your head.
Renting a property is expensive and can take up a significant portion of your monthly income. It is also imperative that rent is paid every month.
Income protection is the safety net which will catch you if this eventuality happens. It will help to ensure you can pay your bills and not lose your home in the event of any major issues.
Important points to be considered.
As such, even if you have a fair and reasonable landlord, it is still very important to cover your income, as the end responsibility falls with you.
Prospect Tree Mortgages are experts in advising on Income Protection. We work with you to establish the best outcome and correct cover.
0800 8620 840