Income protection insurance is 'not the only solution'

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Income protection insurance is 'not the only solution'

Fri 8th Feb 2008

Northwest Consultants said today that income insurance is not a necessity for everyone, but it may be very important for some.

Harry Katz, principal independent financial advisor (IFA) for the firm, suggested that people should think about what would happen to them if they could not work and then decide whether they need income insurance or not.

If, for example, it is likely that a person's house will be repossessed if they are unable to work then he says income insurance "looks cheap, because contemplating what would happen if you didn't have it doesn't bear thinking about".

However if the person's partner earns enough to support the household then income insurance may not be something that is needed

Mr Katz advocated "saving money for a rainy day" as the best solution, but said that current spending habits make this an unfeasible solution for most people.

A recent survey from financial services provider Axa found that 20 per cent of Brits currently have income insurance, but high numbers of people in the UK have life insurance policies.

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