If you would struggle to make ends meet if you were unable to work due to injury or illness, you should consider income protection. 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. This tipe of insurance is a good option for anyone who wants to ensure that their income will always be protected.Get Started
Income insurance pays out in the case that you should fall ill or become injured and are unable to work. It is a long-term insurance policy, and it will replace some or most of your regular income.
This will vary according to your provider and coverage needs. It will also depend on your job, your health, and your age. Plans start around £8 per month at the very low end, but can increase significantly if you want more extensive coverage or have severe health problems.
Protecting your income with an insurance covers a portion of your income in case of:
You must be unable to work for a significant period of time.
You can’t receive protection benefits for just any illness or injury. The following are not covered by protection of your income:
It can be. Some providers will offer the option to include protection for unemployment. This is often called a “redundancy benefit” – it replaces a portion of your income in the case that you are involuntarily unemployed. It will not cover you if you are fired by fault of your own or quit.
A short-term protection plan pays out for a fixed term that you choose in the case of serious but not permanent injury or illness. Terms are usually 6 months, 1 year, or 2 years.
Long-term financial protection plans pay out until the plan expires or you retire in the case of serious or terminal illness that makes it unlikely you’ll ever return to work.
No. You get payments in the form of monthly income.
Unlike critical illness cover, which is paid as a lump-sum should you fall critically ill, income insurance pays out in the form of monthly income. It may often include coverage for more illnesses and injuries than critical illness cover.
This depends on your provider. Most providers have a maximum claim set to your after-tax earnings, minus any government benefits or other payments you might be receiving. Typically, the maximum payout is about 70% of your income. Of course, the lower your coverage, the lower your premiums.
Yes. It is called the deferred period, and it can last anywhere from 4 weeks to one year. Most people will set their payments to start after their sick pay and payments from any other insurance policies end. The longer you set your waiting period, the lower your premium will be.
This depends on your policy. Typically, providers will offer monthly payments until your plan expires, you go back to work, or you hit retirement age – whichever comes first.
Usually not. Most providers will require you to be under the age of 65 or 70 in order to receive coverage.
Yes. You can make as many claims as you need to until your policy expires.
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