If you would struggle to make ends meet if you were unable to work due to injury or illness, you should consider income protection insurance. Almost a million people every year are unable to work due to injury or illness, and most of them cannot cover their expenses for very long without additional support. Income protection insurance is a good option for anyone who wants to ensure that their income will always be protected.Get Started
This cover is a type of an insurance that pays you and your loved ones a lump-sum if you are unable to work due to one of the illnesses defined in your plan. You pay a monthly payment (premium) in order to insure yourself. Some plans will also pay out if a child becomes seriously ill and you can no longer work. Having an insurance provides peace of mind that your family’s finances will always be taken care of.
This will vary according to your age, health, and coverage needs. Plans can start at £20 per month for young and healthy applicants, sometimes even less. They can get up to £100 or more for applicants over 50.
Different providers will define “critical illness” in different ways, but almost all include stroke, heart attack, and some forms of cancer. It’s important to read the list of illnesses included in your plan – some will be very long, some will be shorter. The illness must be severe and usually result in permanent symptoms. However, this is all dependent on the specific policy and insurer that you end up using.
Many providers offer a partial payout for illnesses that are less severe, as defined by the policy. Typically the payout will be around 20% of what you’d receive for a severe illness. If your condition worsens or you become critically ill again, it is still possible to receive the rest of your payout.
Many providers do not pay out if you die, but some will, as long as you live for a certain amount of time. For most providers, the time period is 10-14 days.
A lot of plans have the option to include children in your critical illness insurance at no extra charge, however the payout is usually more limited.
This will depend on your policy, but typically the higher your premium, the higher your payout. Average payouts tend to be around £45,000-65,000. It’s common for providers to offer plans ranging from £10,000-200,000.
Yes, your insurance payout is not taxable.
You can use your payout however you’d like. Many use it to cover emergency medical bills, pay off debts, or pay a mortgage. If possible, it’s wise to invest the lump-sum so it can continue to generate income for you and your family.
Yes, many life insurance providers offer an option to include this cover. In fact, most providers don’t even offer it separately but rather as part of a larger insurance bundle such as life insurance and critical illness cover.
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