Income Protection
Take care of your bills with income protection
How does Income Protection Cover work?
- If you are wholely or partly reliant on your income, you probably need Income Protection
- Income Protection pays out if you are unable to work for any reason due to illness or accident
- It covers employed and self-employed people for up to 70% of gross income
- When claimed upon Personal policies are paid tax free
- We recommend the superior Own Occupation cover
- Policies should be on an Own Occupation basis, therefore if you are unable to do the duties of your own job, the insurer would not consider your inability to perform any other job to qualify for a pay out
- Unlike payment protection policies, Income Protection offers long term cover
- Income Protection can pay out on an indefinite basis (within the term) or a short-term basis
What is covered by Income Protection?
- Income Protection will cover any accident or illness; if you cannot work due to illness or accident you will start to receive an income after your selected deferment period so long as you have been signed off by a GP
- Claims are triggered by your doctor confirming you cannot work and your insurer establishing you are not receiving any continued income from other sources, ie work
- Normally at claim stage, a claim would need to be supported by payslips or accounts to prove pre-incapacity income
- A waiting or deferment period will be decided by yourself depending on your own circumstances, typically this is from one week to 52 weeks
- Full Income Protection covers you indefinitely until either the policy expiry date, you return to work, or death, with a regular income
- Short Term Income Protection covers you for a shorter maximum period off work, typically up to two years
- Multiple claims on income protection within the plan lifetime can often be made
- Unemployment cover can be added to some Income Protection plans at an additional cost, depending on circumstances
What is income protection?
Income Protection policies protect you in the event of ill health.
It provides a tax free monthly income to replace a salary until you return to work.
How much is covered? How long can I be covered for?
- Policies are tailored to fit your needs; we will guide you to the right option for you
- They can cover the maximum amount they can, or cover essential outgoings or somewhere in between
I am self-employed, can I get cover?
- Yes!
- This policy is ideal for self-employed people
I work but can’t prove my income, can I get cover?
- There are policies available where you can claim a specific amount without having to prove your income.
How quickly do I get an income from the insurance if I can’t work?
- You will start to receive an income after your selected deferment period
Is income protection the same as PPI?
- No. Income Protection is completely different
- PPI covers debt repayment and is normally paid to lenders directly, it is normally limited to 12 month payout.
- Income Protection pays a tax free monthly income direct to yourself to be used how you wish and can pay out indefinitely to state retirement age.
Why do I need Income Protection when the state will look after me if I am sick?
- State Benefits are low. Statutory sick pay, if you qualify, is currently £88.45 per week
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