Income Protection – Can you afford NOT to be covered?

According to the Department for Work and Pensions, 32% of all households have no savings, putting them at risk if illness or injury should strike.

What is income protection insurance ?
These policies are designed to pay out if you’re not able to work and earn money due to illness or injury , and in some cases forced unemployment

When do people typically take out a policy ?
People often take out a policy when buying a house, having children, switching jobs or taking on additional financial commitments . Policies can be for the short or long term.

What types of policy are there ?
Guaranteed policies – Premiums remain constant throughout the policy term
Reviewable policies – Premiums are regularly reviewed in line with your age and state of health.
Age-related policies – Premiums increase in line with your age.

How much could I claim?
The maximum amount is usually your net monthly earnings after tax, minus any state benefits you claim. This could be around 65% of your gross earnings and it’s usually tax free.

How long will my income be protected?
Policies pay out following a deferred period, typically between four and 52 weeks, and can continue until you return to work or the policy expires at the end of a fixed period.

Are there other benefits available?
Depending on your choice of policy, it may include terminal illness cover, a lump sum payable on death, or hospitalisation benefits.

There’s a wide range of policies and benefit available; advice from your adviser will help you make the right choice.