With 2012 coming to an end, it's important to think about your finances for the year ahead to ensure you are prepared for what 2013 has in store. As the holiday season means more time on your hands, there has never been a more perfect opportunity to review your financial plans.
This includes looking at your monthly incomings and outgoings such as food, mortgage, rent and bills and being prepared for unexpected circumstances with the help of insurance plans.
However, when money is tight, spending money on insurance can seem unnecessary but for many, it could prove to be a vital safety net.
For example, if you are self-employed, a good insurance policy for you could be Income Protection. Self-employed professionals have no financial backing from an employer, so if you were unable to work due to sickness or injury you would not receive an income.
With monthly average outgoings of a household at around £1,669 and one fifth of Britain's without any savings at all, it can get very tough. This is where income protection can help as a small monthly payment means a regular tax free income will be received when you can't work.
It's hard to forecast what the future holds but you can be better prepared for it. Choosing the right provider and finding the correct level of cover is just as important as having the insurance policy itself.
With so many insurance companies out there, it can be confusing. So here are some top tips to choosing the right provider:
- Check their claims history. Checking a providers' claim pay out rate is a good place to start when deciding on which policy to go for. If they pay out claims often (a good rate is over 90%), you can usually ensure your claim will be paid.
- When will you receive your money? With money becoming an increasing strain for many professionals, receiving your money when out of work becomes very important. If you want an immediate income, make sure your policy provides this.
- Is your occupation covered? Your occupation may influence the type of cover you need and some occupations may even be excluded from certain policies. When looking for what's on offer, check your occupation will definitely be covered. Also look for any policies that are specifically aimed at your industry as a tailored policy may prove to be very beneficial.With 2013 just round the corner, get ready for a brighter financial future with Income Protection insurance so you can tackle your finances with force.David Thompson is CEO of dg mutual - Income Protection specialists who have been helping self-employed professionals to protect their income since 1927.dg mutual paid out 99% of Income Protection claims for the fourth year running in 2012 and over 60% of claims within one week. As a Mutual Society, dg mutual has no shareholders but instead pays out a share of the profits to all members.For an instant online Income Protection quote from dg mutual, visit: http://www.dengen.co.uk
