Nobody has the heart to leave their loved ones without financial security. Making wise decisions at an early age is a necessity, especially when the mortality rate is increasing day by day. How about investing in life insurance? On second thoughts, the commoners wonder whether they should invest in income protection or life cover. There is a vast difference between the two. Life insurance VS Income protection – What would you choose? 

Pointing Out The Differences 

Life insurance is suitable for those who want to provide a lump sum amount to the beneficiaries. This could cover the mortgage cost, any debts, and even funeral costs. Your family/beneficiaries can use the money for daily expenses or even educational fees. 

In life, you have to be better prepared for emergencies such as a sudden illness or becoming injured. During this time, you will not be able to go to the office. While statutory sick pay is there in the United Kingdom, but some people may not find the payout to be satisfactory. Self-employed individuals have to be better prepared. They should get the income protection cover in place. 

That’s the significant difference between life insurance and income protection. Income protection covers your bills while you are sick/injured. Life insurance cover lump sum gets paid after your death. 

Which one to choose? 

Both life insurance and income protection are necessary for any individual. Life insurance covers your death, secures your family’s future, and income protection insures your income. They serve different purposes but are essential for the well-being of the dependents. The question is – Does life insurance include income protection? 

When you are buying life cover, consider opting for income protection as well. If you are alive, you will not benefit from life insurance. This golden egg is helpful for your beneficiaries/dependents.

Use these policies side by side; get them both in place. Should anything happen to you, the income protection policy will help in paying your bills. After you leave the world, the life insurance payout will help the beneficiaries. It is a win-win situation! 

We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
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