WHEN talking to financial advisors about mortgages, you know that there are normally some kinds of insurances that may well be required.

But how many people have gone through the mortgage process and thought that some of them were too expensive or unnecessary only to find that they wished they had considered it because they are off work due to sickness or because of an accident?

When talking to clients about income replacement, I make it clear that it is something worth considering and go through the benefits in detail so they have a full understanding before making a decision.

Income replacement policies do exactly what they say. They will provide an income for the claimant, after the agreed deferred period until they are able to return to work.

It is obviously important to have an income whether you have a mortgage and family, or indeed if you are renting and single because bills will need to be paid at some stage, whatever situation you are in. Yes, that’s right, all those people reading this who are renting can have an income replacement policy! And what’s more, they probably need it.

I have recently arranged a policy for a client. Her employer paid her for six months so the Income Protection policy started when her employer’s benefits stopped. The policy will continue to pay until she is able to return to work, or she died or when she retires.

If she had to claim and was unable to ever return to work, this policy would potentially pay until her retirement at age 60. The policy is also linked to inflation and would therefore go up each year almost like a salary.

Don’t forget, you do not have to be a homeowner to benefit from a policy like this. If you are renting or even living at home, you can still have enough financial commitments to warrant needing you income replaced on a monthly basis.

If you want an further information on a policy like this, be sure to contact an independent financial adviser.