Income Insurance

Income protection insurance is available for the employed and self-employed.

You can generally cover between 50% and 70% of your gross salary if you are unable to work due to illness or accident.(1)

 

What you need to know about income protection insurance

Worried about what can happen if you become ill or have an accident? Income protection insurance could offer you and your family security.

Income protection insurance is a way to protect yourself and your loved ones in the event of unexpected situations, such as illness or other health complications that would prevent you from being able to work.

Why do I need Income protection insurance?

Have you ever wondered what would happen if you’d suddenly stop working? How would you support yourself and your family?  How would you pay for the rent, how would you pay for your mortgage, your child’s school? A month or two … maybe that long you would be able to survive on your savings. But what’s next? What if you don’t find a job as soon as you think or you are unable to work for a long time? What then? If you are concerned that you will not be able to cope with such a situation, because, for example, you do not have enough savings, or you just want to be prepared for any circumstance, income protection insurance might be for you.

 

How income protection works?

If you find yourself in a difficult situation, such as accident or a serious injury,  money will be the last thing you will want to think and worry about. Income protection pays you a regular income if you can’t do your own job because of illness or injury.

Income Protection Insurance we offer is flexible and it can meet your individual needs and budget. You can generally cover between 50% and 70% of your salary. Exclusions apply.

You can decide the amount of time between you stopping work and getting your first payment from the insurer.  This is called a deferred period and you can choose, often ranging from day one to a 52 week deferred period – the longer the deferred period the cheaper premium you will pay. You also choose how long you want your payments to last, generally from one year up to full pay until you get back you work or retire whichever comes first. It’s up to you.

 

 

Additional benefits (OPTIONAL – available with certain providers – contact us for more details)

Sometimes the insurance companies may provide additional benefits with their insurance packages. Here are some of the examples:

 

Fracture cover

If you have suffered a fracture, with this benefit, the insurance company will pay you even up to £4,000 for rehabilitation and treatment.

You can usually make a maximum claim for financial support for two injuries in a 12-month period. The amount of financial support depends on where the injury is and how serious it is.

 

Hospitalisation payment

If you are hospitalised for more than six consecutive nights during your deferred period, with this benefit the insurance company will pay £100 for each night after that, for up to 90 nights during the term of your cover.

 

Back to work

If you have decided to go back to work and the insurance company has stopped making your Income Protection payments but you still need financial help, this option may be just for you. How it works? If you have a deferred period of 13, 26 or 52 weeks, the insurance company will make a payment in the first and second month of returning to work. The specific amount you get depends on your cover payment period:

• If your cover is paid for the entire term of your plan, you will get 50% of the monthly benefit for the first month and 25% for the second month.

• If you have a one, two or five year pay cover payment period, you will get 25% of your monthly benefit for the first month and 10% for the second month.

 

Helping hand to get you back on your feet

This benefit provides practical and emotional support in the event of serious illness or injury. In the case of illness and injury,  when you are unable to work, it is not only money that is extremely important. The insurance company gives you access to practical and emotional support to help with recovery from illnesses or injuries such as back problems and mental health issues.

Helping hand covers help of a personal nurse, second medical opinion, speech and language therapy and more.

 

NOTE: The above examples do not constitute an offer. These are only examples of extra benefits that may be offered by some insurance companies. This is to show the variety of insurance offers on the market.

 

What do I need to get a quote?

Name, age and address, type of job you do, whether you’re employed or self-employed, if you smoke or use nicotine-based products, the deferred period you choose, information about your health, the amount of cover you want, based on your monthly income.

 

How much of my income will it cover?

Income protection typically covers up to 60% of your gross monthly income.

 

What if I lose my job?

If you have short-term income protection or unemployment policy you should receive a pay-out if you lose your job.

 

However, you won’t be able to claim if you buy a policy after your redundancy has already been announced. It’s also very unlikely you’ll receive a pay out if you take out voluntary redundancy.

 

Check the terms and conditions before you buy to make sure you’d qualify for unemployment protection.

 

What if I die?

If you die, your income protection insurance will no longer be valid. If you have dependents who rely on your income, you may  want to consider taking out life insurance. This will give your family financial protection in the event of your death.

 

Can I have more than one income protection insurance?

Yes you can. However, you cannot exceed 60% of your gross monthly/annual income.

 

Need help? Have any questions? Give me a call