Income Protection Insurance
Get paid even if your income stops
Income Protection Insurance
If your income stopped, how long would your savings last?
It’s a big question. And one you don’t really want to think about. Take out Income Protection Insurance and you won’t have to.
What is Income Protection Insurance?
Income protection insurance supports you financially if you become unable to work. The insurance covers most injuries and illnesses in both short and long term circumstances, substituting part of your income until you can return to work. Having income protection cover can relieve a lot of stress you may have around your finances, allowing you to focus on recuperating.
If you don’t currently have income protection or any other similar cover, you run the risk of being unable to keep up with daily costs such as mortgages, household bills or other insurances, should an accident or illness occur. The risk varies for each person, but you can completely eliminate any risk with income protection cover.
Many people decide to take income protection cover as a backup, particularly those who are self-employed and don’t have access to sick pay, or who have a limited amount of savings to cover any payment gaps.
“We’re not here to sell insurance policies. We’re here to ask questions and give no-nonsense advice. And when we do this, the right policy naturally follows.”
– Simon Claxton, Income Protection specialist
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Get paid if your income stops
Income Protection Insurance Features
No one can predict what’s around the corner and being forced to take time off work creates financial pressure. Income Protection Insurance means you won’t have to worry about how your mortgage and bills will be paid if you can’t work.
You pay a monthly or annual premium. And if you need time off after an accident or to recover from a serious illness, you’ll get regular payments that replace a proportion of your taxable income (including salary or dividends).
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Long-term cover
Choose a policy that provides an income until you return to work, or, until you reach retirement.
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Affordable premiums
Keep costs down by increasing the length of time before your payments start or by limiting the payment period to a fixed number of years.
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Extra support
Add on services like physiotherapy and psychological support to speed up rehabilitation.
How Income Protection Insurance works
If you decide to take out income protection cover, you will be paying a monthly or annual premium to receive regular payments that can replace up 80% of your taxable income and in some cases this can include P11d benefits and dividends should you become unwell or injured. Other details you should be aware of include:
- Premiums are determined by your policy and individual circumstances
- Protection policies can be short or long-term cover – short-term will pay out for a fixed amount of time you agree on, while long-term cover will pay out until you are well again, or the policy ends
- You can claim as many times as you need whilst you have the policy
- Income protection insurance will cover most illnesses that leave you unable to work – it does not cover redundancy, resignation or unemployment
- It can provide more longer-term protection if your company doesn’t offer sufficient sick pay for your circumstances, or if you are self-employed
- The insurance can include extra support to aid in your recovery, including utilising rehabilitation services
Before taking the leap and investing in an income protection policy, there are some questions to consider:
- If you’re employed, do you have sick pay to fall back on? Will any funds available be sufficient to cover you for a period, or is an insurance policy a better option?
- Can you afford the premiums of the cover level you need? Make sure you’re getting cover that’s affordable. But also ensure your policy covers you completely when you need it the most.
- Is income protection insurance the right type of cover for you? If you’re unsure, take a look at some other personal protection cover options available to you
Income protection insurance will save you from many worries should you be unable to work at any point in your working life, and you don’t have to spend a fortune to reap the protection benefits. You never know what’s around the corner, so get in contact with us today to find the best financial security for you.
Things you might not know about Income Protection Insurance
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Legal & General’s latest ‘Deadline to Breadline’ research revealed that the average UK employee only has enough savings to last 32 days if income stopped.
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If you are a doctor or surgeon working 32 hours a week or more, insurers will guarantee a minimum monthly income, regardless of how much your income has dropped or when you make a claim.
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If you are a homemaker, you can get Income Protection Insurance too. It means if you are ill, you don’t have to struggle on; you’ll get help to pay for childcare, cooking and cleaning.
The average UK employee only has enough savings to fund 32 days of their current lifestyle.
Have you considered...?
Protect your pay
Talk to us about Income Protection.
- Reading 0118 916 5480
- Marlow 01628 532 613
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