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.
This one's easy! Click here to get yourself a free income protection insurance quote.
Life insurance is a type of insurance policy that pays out a lump sum of money to your family & dependents in the event of your death.
Life insurance is one of the most generous things you'll ever purchase. By purchasing a life plan, you can make sure that the people you love the most are well looked after should the worst happen.
There are three main types of life insurance cover - these are:
Level term insurance policies pay out if you die within a fixed timeframe which you choose up front. Premiums and pay-out stay the same, regardless of whether you die on the first day, or the last day of the policy.
The whole of life policies guarantees to pay out regardless of when you die – with no fixed time limit. These are normally more expensive, but you can get lower monthly costs by taking out an Over-50s policy.
Decreasing term insurance policies are usually aimed at covering the remaining debt on a repayment mortgage if you die. These policies usually have a set timeframe and the pay-out decreases over the policy term – usually in line with the remaining mortgage debt. There are other tailored life insurance plans (such as Critical Illness Cover, Income Protection and Mortgage Protection).
This really depends on your own specific circumstances, but the average UK monthly life insurance cost is roughly £8.50 (but can be as little as £5 per month). The factors that have an impact on your life insurance costs include:
Age: Usually, life insurance rates increase as you age. If you are already over 50.
Health: Do you smoke? Any chronic conditions? These could have an effect on the cost of your life insurance.
Gender: Statistically, women live longer - and pay lower life insurance because of it.
Occupation: Some jobs require more health risks - if you're a sky diving instructor, you will most likely be paying more on life insurance than the typical office worker.
Examination: A thorough medical checkup will let the insurer know if you're low risk - meaning your monthly payments will be lower.Get a quote now >
Income protection insurance will pay you a proportion of your income if you are unable to work due to sickness or injury. This will help if you are the sole breadwinner and would hit financially instability if you were no longer able to work.
Income protection will make up a proportion of your income however if you specifically want to receive a lump sum if you are diagnosed with a critical illness
If you are the sole breadwinner in your family, and have multiple dependents, Income Protection could be a great way to keep your family from financial issues if you were no longer able to work.
Again, this is largely dependent on the type of life insurance policy you decide to take out. The average life insurance payout is roughly £51,000, but with certain providers, this average raises to over £115,000.
However, these averages are basic indications on how much your dependents would receive in the case of your death. Unfortunately, there is no sure-fire way to know how much would be paid out, and your best bet is to get a free quote and see for yourself.