8 Major Income Protection Myths Debunked

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Income protection is often misunderstood by the consumer. This article aims to correct the misperceptions, helping you to fully understand how income protection can benefit you.
Insurance products aren’t the easiest of things to understand and income protection insurance is no exception. With cumbersome key facts booklets and the media citing stories of context-specific consumer-insurer battles, it’s no surprise that many people misunderstand exactly what income protection is and what it specifically offers. Outlined here are eight major protection myths demystified, so that next time you hear something about income protection, you’ll be able to separate fact from fiction.

Myth 1: It doesn’t pay out

Provided that the policyholder has kept up-to-date with their monthly premiums, and has given truthful personal information from the outset, income protection claims are nearly always paid out. In fact, last year in the UK, insurance providers paid out over 90% of successful income protection claims. If you’re still unconvinced and want to double check specific insurer payout rates, most of them now provide easily-accessible claim statistics on their websites.

Myth 2: It’s too expensive

This myth is purely subjective. If you were a smoker in a high risk job and wanted a very high level of cover, your premiums would, of course, be costly. For the majority however, income protection cover is affordable and can cost as little as 30p per day. If you want significantly lower income protection insurance quotes, consider buying through a commission free broker or by extending your deferral period – the amount of time between a claim being made and the money being paid out. Premium rates are calculated based on your age, health, smoker or non-smoker and occupation, so if you’re serious about cutting the costs of premiums, it may also be beneficial to adopt a healthier lifestyle.

Myth 3: It’s a waste of money

When it comes to ill-health and injury, people can feel a sense of invulnerability, and so it’s all too easy to see how this kind of myth circulates. But ask anyone who’s used their income protection policy, and they’ll be the first to debunk this notion. If you were unable to work due to illness or injury, the monthly instalments provided by income protection could become invaluable, affording reassurance that bills, loan repayments, and any other expenses could continue to be financed during your time off work.

Myth 4: It isn’t necessary if you receive benefits

Statutory sick pay and other benefits tend to pay no more than £400 a month, which for most, would not cover the rent or mortgage. An income protection policy however, would pay up to 75% of your usual income, comfortably covering the costs of your living. Some employers will provide a more comprehensive benefit than statutory sick pay. Therefore, it’s important to check if this applicable; as this may mean that your deferral period can be extended which can, in turn, lower premiums.

Myth 5: It’s the same as PPI

Although they may sound similar, income protection and payment protection insurance (PPI) are not the same products. PPI insures a specific loan repayment, whereas income protection is designed to cover a portion of your income. If you found yourself unable to meet your mortgage repayments due to ill health, PPI would be on hand for this, but what about all the other inevitable expenses? This is where income protection comes in.

Myth 6: It’s not necessary if you have critical illness cover

Whilst critical illness insurance is important, unlike income protection, it would not pay out if you were unable to work due to injury or if you developed a non-critical illness. For this reason, income protection may be worth considering along with critical illness cover, as this would cover a wider range of eventualities.

Myth 7: It’s not for you if you’re are self-employed

Self-employed people can get income protection insurance, but be prepared to provide the relevant documentation. If you’re self-employed, your income may be more variable, so it would be beneficial to regularly review your policy to ensure that you’re covered for the amount of money you require.

Myth 8: It takes too long to apply

Whilst this may have been true in the days of dial-up-internet and telephone brokers, thanks to user-friendly websites, it is now easier than ever to search, compare and buy income protection policies.

Pros and Cons of an Estimated Car Insurance Cost

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Although the vast majority of drivers still purchase insurance through the old-fashioned way from agents, this old trend is gradually shifting to a new method that more and more people are now buying insurance online. Most major insurance companies have created easy-to-use forms on their official websites, allowing customers to renew or purchase coverage via Internet. Potential customers are even provided with a tool/calculator to get an estimated car insurance cost. In case you are not familiar with car insurance calculator, it is a tool for you to basically predict the average amount you should pay for the coverage.
Advantages

When an insurance company provides online-buying system, customers get two immediate benefits. First, it eliminates the needs for third-party agents including captive and independent agents. While captive agents can be considered a company’s representatives, they often persuade you to purchase coverage as soon as you request for quotes. Independent agents work on your behalf, and you may have to pay for their services. Although there are multiple services provided by either agent, you can easily regard the agent as car insurance cost estimator.

Second, you have the chance to learn basic knowledge of insurance especially about what factors that affect your premium fee. An estimated car insurance cost suggested by an online calculator is determined based on your data including car model, address, annual mileage, past infractions, etc. Each of those factors helps to determine the final cost. You can change the data in the forms and see how each factor affects your premium.

Online car insurance calculator is often available from independent websites as well. This tool is free to use, and you can get multiple quotes from different companies with one-time calculation only. Every calculation usually takes less than 5 minutes, meaning you will be able to make proper comparison in no time.

Disadvantages

Free online car insurance calculator, no matter how good it is, will only give an estimated car insurance cost or approximate calculation, which is possibly different (regardless how slightly) from the actual amount you should pay. Some factors such as credit card score and possibility to be eligible for discounts are most likely excluded from the equation. Unlike captive or independent agent, the online tool does not put your own financial circumstances and other related issues into account. Such tool can indeed be a very quick car insurance quote calculator, but you still have to contact insurance companies to get detailed estimation.

Estimated car insurance premium generated by online tool cannot be as accurate as real live agent. However, it gives general idea of the amount you should pay, and it is a good thing since it leads you to be budget-minded insurance customer.

Types Of Commercial Insurance Every Business Owner Should Know About

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Business owners have a wide variety of assets and interests that they need to protect. In order to get the most comprehensive coverage, they’ll need to consult with a reputable commercial insurance agent. Many types of coverage fall within the category of commercial insurance. Some are similar to independent offerings, such as automotive and property coverage, while other types of commercial insurance are specific to the business world. The following breaks down a few of the options available.
Property This option covers real estate and belongings. Common equipment that is included in a property plan includes computers, furniture, inventory, and other office equipment. It can protect against a variety of problems, including theft, fire, vandalism, and more.

Loss of Earning This covers lost wages in a situation in which the organization is unable to operate. For example, if a fire has caused extensive damage and the business is forced to shut its doors for weeks or even months, Loss of Earning coverage will provide protection.

Auto Vehicles that transport employees, company equipment, or products can all be covered. This includes all types of vehicles, including SUVs, cars, vans, and trucks. Employees who drive their own vehicles for work purposes should also seek non-owned auto liability coverage.

Workers Compensation This program benefits employees who are injured on the job. It replaces lost wages and provides medical benefits, and is required in all 50 states. It protects owners from being sued by injured employees.

General Liability This coverage applies if anyone claims the business, its products, or its services caused bodily injury or property damage. It is essential for both home-based business and larger organizations.

Professional Liability A professional liability package offers defense against claims of failure to deliver or improper delivery of services. This could apply to many types of businesses ranging from a hair salon to a business consultancy to a law firm. It is commonly referred to as Errors and Omission coverage.

Data Breach Data can be accessed and leaked in the form of paper files and by electronic means. Businesses that are responsible for storing sensitive personal data about its employees or customers, such as credit card numbers or social security numbers, need protection from a breach.

Life This form of commercial insurance impacts not only business owners and employees, but also their families. In the case of death, financial benefits are directed to a beneficiary. This is particularly important to protect spouses and family members from having serious financial concerns following the death of a loved one who provided financial support.

Why a Courier Career Could Mean a Bright Future

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Choosing a career, whether you’re leaving school or simply fancy a change of direction, can be a minefield, but you could do a lot worse than entering a courier career, especially in today’s economic climate. Perhaps you already work in the business and are familiar with the irregular hours and constant ‘on the road’ lifestyle. If this is the case then you will be pleased to know that the industry you’ve chosen is flourishing and the future is particularly bright.
Demand is continuing to increase year on year, with the number of parcels travelling across our country predicted to grow by around 40% by the end of 2019. Thanks to the positive long-term growth estimations and the potential for strong return, now is definitely a good time to consider a courier career – whether as a driver, a manager or as an investor in an existing company.

One of the main reasons that this business has grown so successfully is that fact that it benefits hugely from the impact of e-commerce. But how are the two linked?

The E-commerce Effect

There is no doubt that over the past couple of decades the amount of post, in terms of letters, has decreased dramatically and the transport of parcels and packages has done the opposite. This is due primarily to two factors: an increase in online purchasing and the growth in the global market (particularly in India, China and Europe). Consequently, the courier industry is thriving and this is excellent news for drivers already in the business and anyone considering getting a courier career off the ground.

Online Spending

In today’s fast paced world we place a huge emphasis on convenience – people don’t want to wait and instead are using quick fix online shopping to satisfy their needs. From weekly grocery shopping to gifts, and from home appliances to clothes, nowadays everything can be ordered on the Internet. As the need for more and more deliveries rises, so does the need for more and more delivery drivers and compliant companies in the industry.

Consumer spending is at the crux of the rise in the growth of this industry and if consumer spending continues to increase as predicted, the industry is set to prosper. There really is no better time to be working in this industry, and that is a fact!

Opportunities in the Future

Embarking on a courier career is challenging but rewarding. Hours are long and sometimes unsociable, but methods of delivery and ways of working are constantly changing as the companies strive to keep up with the changing demand. New systems are tackling the increased need for next day deliveries, and businesses are experimenting with cutting overheads and turnaround times. Companies are developing fast and both the environment and the work itself are exciting and gratifying.

Insider’s tip: The express sector in the courier industry is going to see the most growth in the near future, so consider setting your sights there when it comes to getting your courier career off the ground.

Author Plate

Norman Dulwich is a correspondent for Courier Exchange, the world’s largest neutral trading hub for same day courier work in the in the express freight exchange industry. Connecting professionals across the UK and Europe through their website, Courier Exchange provides a valuable service, updating members with the latest information from the transport industry, including courier career options, road safety, fuel costs and other news. Over 5,400 member companies are networked together through the Exchange to fill empty capacity, get new clients and form long-lasting business relationships.