Income Protection Insurance

With income protection in place, you will receive a tax-free monthly amount If you unable to work for medical reasons; physical or mental, illness or injury. These monthly payments can help to cover your main outgoings until you are well enough to go back to work, whether you are employed or self-employed. Depending on your type of policy you can claim as many times as you need to during the term of your policy.

Do I need Income Protection?

Most working adults would benefit from income protection because, in most cases, if we lost our income our financial commitments would be affected. If your partner relies on your income or you have children that are dependent, then your loss of income would also have an impact on your family.

Income protection can be valuable in many cases:

If you are the sole breadwinner
If you are self-employed or employed
If you couldn’t afford to pay the bills if you were unable to work
If you are a homeowner
Couples or single parents who have dependants
If you are a renter with financial commitments

Having income protection in place provides you with the peace of mind that if you temporarily lost your income then you wouldn’t have to borrow money, rely on others, or drastically change your lifestyle.

How Income Protection Works
Taking out income protections means that you will pay a monthly premium based on the details of your policy. You decide how much you would like to receive if your health prevents you from working. This is generally based on your current income and insurers will set your monthly amount at a maximum of 50-60% of your pre-tax income.

Waiting Period:
All income protection policies have a waiting period, which is the period between when you are unable to work and when you receive your first payment. This can be anywhere between 1 and 52 weeks. You decide on this waiting period. It is important to note, you will pay lower premium for a longer waiting period than a shorter one. This decision may depend on your personal circumstances and whether you have the finances in place to meet your living costs without any replacement income.

Full-term and short-term cover
Full-term and short-term refers to the maximum amount of time you can claim your monthly payments for. Full-term allows you to claim for as long as you need while you are signed off from work. Once you are fit enough to return to work then your policy ends. With short-term cover you have a maximum amount of time you can receive payment for. This is a more affordable cover but full-time can provide you with a more security as we simply cannot foresee any future health conditions and their severity.

Income Protection Insurance: Securing Your Livelihood When Unexpected Challenges Arise

Safeguarding your financial stability is a crucial aspect of planning for the future. Income Protection Insurance, a versatile and essential coverage, offers a safety net to protect your livelihood during unforeseen circumstances. This type of insurance stands out for its comprehensive coverage, reliable support, and peace of mind it provides during difficult times.

Income Protection Insurance is specifically designed to replace a portion of your income if you are unable to work due to illness, injury, or disability. It ensures that you can continue to meet your financial obligations and maintain your standard of living even in times of crisis.

One of the key advantages of Income Protection Insurance is its comprehensive coverage. Unlike other types of insurance that may offer lump-sum payouts for specific situations, Income Protection Insurance offers ongoing monthly payments during the policy term, ensuring a steady stream of income during your recovery.

The flexibility of Income Protection Insurance is another significant benefit. You have the freedom to choose the waiting period before the policy kicks in, as well as the duration of the benefit payments. This adaptability allows you to tailor the coverage to match your unique circumstances and financial needs.

Income Protection Insurance also offers peace of mind, knowing that you can focus on your recovery without the added stress of financial instability. With a reliable monthly income, you can concentrate on regaining your health and well-being, knowing that your finances are protected.

Furthermore, Income Protection Insurance offers long-term coverage, ensuring you’re protected for an extended period. This means you have financial support for as long as it takes for you to return to work, retire, or until the end of the policy term, depending on your chosen coverage.

Customer service is an essential aspect of Income Protection Insurance providers. They offer personalised support throughout the policy’s duration, addressing any queries or concerns you may have. This proactive assistance ensures a smooth claims process when you need it most.

As digitalisation becomes the norm, most Income Protection Insurance providers offer user-friendly online platforms. These platforms allow you to manage your policy, make premium payments, and access vital information with ease and convenience.

Protect your income and financial well-being with Income Protection Insurance. With its ongoing monthly benefits, flexible options, and commitment to customer support, Income Protection Insurance is more than just a policy; it’s your dependable shield against financial uncertainty during unexpected challenges.

Find out more about Life Insurance by reading our Life Insurance Explained guide

How much Does it Cost?
There are a variety of cover types with income protection as people’s budget and circumstances differ. So, your premium will depend on the type of policy you want. The insurer will also consider your lifestyle, your age and whether you smoke. We always suggest speaking to an independent advisor to gain a more accurate cost for income protection.

Comparing Different Types Of Cover
There are many types of insurance that can help protect your family. Life insurance and critical illness protection is also worth considering if you are researching income protection and types of cover.

Critical Illness Cover pays out a lump sum if you become critically ill with one of the serious illnesses the policy covers. This one-off tax-free payment can help cover a mortgage, rental payments, care for a loved one, make necessary alternations to your home or simply cover your household bills

Life Insurance

Life insurance provides a lump sum in the event of death during the term of the policy. Life insurance will be paid to your loved ones and can be used to ensure your family can maintain their lifestyle should anything happen to you.

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Critical Illness Cover

Financial worries are the last thing you want to be dealing with should you become critically ill. A critical illness policy will pay a lump sum, upon diagnosis of a qualifying illness. These conditions will vary depending on the chosen insurer.

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