Why can Income Protection be so expensive?

I am often asked why income protection is so expensive. There can be a lot of reasons, take these points into consideration:

Age
Sex
Smoking status
Job description (manual or office based)

There are a number of other points taken into account by the insurance companies but one of the biggest reasons the premiums for income protection can be high is because it can provide a monthly percentage of your income until you are 65 or 70 years old. For example:

A 40 year old who is insured for $50,000 per year would get well over $1,500,000 over the next 30 years if they were unable to work due to sickness or accident. That's a lot more than most people would realise. It could be an even bigger number if inflation is high.

Add up your income until you are 65 or 70 and see what it might come to, then imagine not being able to work and not earning that money. All of a sudden the cost of the insurance doesn't seem so high and the importance of making sure your income will continue to come in is much higher.

For a review of your income protection and quotes call me on 0800 230 235.

Reagan