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Income Protection

You and your loved ones might be working hard in your dream job, or building a successful business. Either way, it is very important to protect your income, so that if you fall sick, the cost of treatment and household expenditure can continue to be met. Then hopefully, you can return to work as quickly as possible.

Speak with us about how this could help you recuperate quicker and return to work more effectively

Schedule a Free Consultation

*Please note our services are tailored towards UK residents and domiciled persons.

Speak to our Experts:

📞0118 230 1494

Income Protection

You and your loved ones might be working hard in your dream job, or building a successful business. Either way, it is very important to protect your income, so that if you fall sick, the cost of treatment and household expenditure can continue to be met. Then hopefully, you can return to work as quickly as possible.

Speak with us about how this could help you recuperate quicker and return to work more effectively

Schedule a Free Consultation

*Please note our services are tailored towards UK residents and domiciled persons.

Income protection insurance provides a source of income if you are unable to work, usually due to illness or injury. Short-term and long-term types of income protection insurance are available.

If you are concerned about the financial implications of becoming ill or losing your job, income protection insurance could help provide security for you and your family.

Why is an income protection insurance policy important?

The type of income protection insurance policy you choose determines what is and isn’t covered. The length of time you’re covered is also determined by the type of policy and insurance provider you choose

Short-term income protection provides insurance for accidents, sickness, and unemployment during a temporary loss of work. Policies typically cover you for one or two years.

Long-term income protection, also known as permanent health insurance (PHI), will protect you against the financial consequences of a serious accident or illness. The policy does not cover unemployment. With long-term income protection insurance, you will continue to receive a regular monthly income if you are unable to work again or when the policy expires.

Income protection insurance isn’t the same as Payment Protection Insurance (PPI). PPI covers a specific debt if you’re unable to work because of injury, illness or unemployment. Income protection gives you a monthly allowance that you can use like your regular income.

Why is an income protection insurance policy important?

Income protection covers about 50% to 70% of your gross monthly income. Some policies will include income earned from work-related dividends, bonuses and commissions, as well as salary. Check the policy details carefully before you choose a plan.

If you’re able to return to work, but you’re working fewer hours than previously, your insurance provider may continue to pay you a partial income until you return to work full-time. Again, check with your agent or insurer for details.

Policies provide a waiting period of at least one month, during which time you are not able to make a claim. The longer the waiting period, the cheaper your policy is likely to be.

If you are entitled to statutory sick pay, you may be able to claim it on your income protection policy at the same time. The insurance company will pay out when your sick pay ends.

How much does an income protection policy cost?

The cost of income protection insurance varies depending on your personal situation and the policy you choose. Some factors that can affect the cost include:

Salary

The more you earn, the more you’re looking to cover with your protection insurance, which means your premiums are likely to be higher.

Job

The riskier your job is, the more money you will pay for insurance coverage. For instance, builders and mechanics will pay more than accountants and office workers.

Monthly Outgoings

You will need to ensure that you have sufficient cover to pay your existing bills if you are unable to work.

Debts

If you have outstanding loans, credit or other debts, it is essential to have enough cover to pay these costs.

Marital Status

If you have a spouse, civil partner and/or family who are financially dependent on you, you may need to purchase additional life insurance.

Age

As you age, your health insurance premiums are likely to increase

Health

Individuals who have pre-existing health conditions are more likely to make a claim and will therefore be expected to pay more.

Lifestyle

If you participate in extreme or adventure sports, you're more likely to be injured, which can lead to making a claim.

Income protection insurance provides a source of income if you are unable to work, usually due to illness or injury. Short-term and long-term types of income protection insurance are available.

If you are concerned about the financial implications of becoming ill or losing your job, income protection insurance could help provide security for you and your family.

Why is an income protection insurance policy important?

The type of income protection insurance policy you choose determines what is and isn’t covered. The length of time you’re covered is also determined by the type of policy and insurance provider you choose

Short-term income protection provides insurance for accidents, sickness, and unemployment during a temporary loss of work. Policies typically cover you for one or two years.

Long-term income protection, also known as permanent health insurance (PHI), will protect you against the financial consequences of a serious accident or illness. The policy does not cover unemployment. With long-term income protection insurance, you will continue to receive a regular monthly income if you are unable to work again or when the policy expires.

Income protection insurance isn’t the same as Payment Protection Insurance (PPI). PPI covers a specific debt if you’re unable to work because of injury, illness or unemployment. Income protection gives you a monthly allowance that you can use like your regular income.

Why is an income protection insurance policy important?

Income protection covers about 50% to 70% of your gross monthly income. Some policies will include income earned from work-related dividends, bonuses and commissions, as well as salary. Check the policy details carefully before you choose a plan.

If you’re able to return to work, but you’re working fewer hours than previously, your insurance provider may continue to pay you a partial income until you return to work full-time. Again, check with your agent or insurer for details.

Policies provide a waiting period of at least one month, during which time you are not able to make a claim. The longer the waiting period, the cheaper your policy is likely to be.

If you are entitled to statutory sick pay, you may be able to claim it on your income protection policy at the same time. The insurance company will pay out when your sick pay ends.

How much does an income protection policy cost?

The cost of income protection insurance varies depending on your personal situation and the policy you choose. Some factors that can affect the cost include:

Salary

Job

Monthly Outgoings

Debts

The more you earn, the more you’re looking to cover with your protection insurance, which means your premiums are likely to be higher.

The riskier your job is, the more money you will pay for insurance coverage. For instance, builders and mechanics will pay more than accountants and office workers.

You will need to ensure that you have sufficient cover to pay your existing bills if you are unable to work.

If you have outstanding loans, credit or other debts, it is essential to have enough cover to pay these costs.

Marital Status

Age

Health

Lifestyle

If you have a spouse, civil partner and/or family who are financially dependent on you, you may need to purchase additional life insurance.

As you age, your health insurance premiums are likely to increase

Individuals who have pre-existing health conditions are more likely to make a claim and will therefore be expected to pay more.

If you participate in extreme or adventure sports, you're more likely to be injured, which can lead to making a claim.

FREQUENTLY ASK QUESTIONS

Income protection insurance is also known as permanent health insurance, and it provides an income to replace the amount that you would have received from your normal job. However, it does not replace your entire earnings. The amount of money you are allowed to claim will not replace the exact amount of money you were earning before you had to stop work. You can expect to receive about a half to two-thirds of your earnings before tax from your normal job.

Income protection insurance: provides regular payments that replace part of your income if you're unable to work due to illness or an accident, up to a specified maximum. If you stop working before reaching the end of your policy term, any remaining payments are paid out until you can start working again or until you reach retirement age, die or reach the end of the policy term.

If you are injured or become ill and cannot work, you may be able to make a claim for income protection. This is called Total and Temporary Disability (TTD) or salary continuance claims.

FREQUENTLY ASK QUESTIONS

Income protection insurance is also known as permanent health insurance, and it provides an income to replace the amount that you would have received from your normal job. However, it does not replace your entire earnings. The amount of money you are allowed to claim will not replace the exact amount of money you were earning before you had to stop work. You can expect to receive about a half to two-thirds of your earnings before tax from your normal job.

Income protection insurance: provides regular payments that replace part of your income if you're unable to work due to illness or an accident, up to a specified maximum. If you stop working before reaching the end of your policy term, any remaining payments are paid out until you can start working again or until you reach retirement age, die or reach the end of the policy term.

If you are injured or become ill and cannot work, you may be able to make a claim for income protection. This is called Total and Temporary Disability (TTD) or salary continuance claims.

Insurance is available for up to 12 years. May I assist you? As specialists in this field, we are happy to guide you through the process of arranging insurance-backed guarantees.

Discover the advantages of an insurance-backed guarantee and how it can provide added security and peace of mind. Learn how these products work and the types of events they cover, as well as the different risks and costs associated with them.

We’ll also help you understand the potential benefits and drawbacks of a particular product, and provide tips and advice on how to choose the best coverage for your needs.