Our Services / Income Protection
Income Protection comes second on Mitchell & Company's agenda of protection needs. The reason is quite simply that your income is your biggest asset. If you are reliant on your own ability to earn money then a long term illness or disability could be devastating to you and your family. If you are one of the fortunate few who are financially free then the ability to maintain your income from investments is equally important.
There are many types of insurance which claim to protect income. Payment protection insurance (PPI) should protect a loan or higher purchase agreement. PPI has been mis-sold by banks and building societies and is seen by some as having poor value. Indeed, at Mitchell & Company we have never seen a successful claim on a policy which, in some way, verifies this claim.
Accident Sickness and Unemployment cover (ASU) provides you with an income to meet your outgoings if you were off sick or made redundant. Typically ASU would only cover your mortgage and associated expenditure for up to two years and you would need to wait for a period of 30-90 days in order to make your first claim.
Income Protection or Permanent Health Insurance (PHI) is the only plan that can provide true protection right up to your retirement date but there is widespread confusion amongst clients as to what PHI actually is, as well as what it delivers. It is also difficult to get the balance right between choice and complexity.
As with all plans income protection should not be bought in isolation and should be considered as part of a protection package alongside existing plans and employment benefits.