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Income Protection Insurance

Income Protection Insurance: Safeguard Your Earnings, Secure Your Future.

I WANT TO PROTECT MY INCOME

What Is Income Protection Insurance?

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Income protection insurance is a policy designed to protect your income if you’re unable to work due to illness, injury, or disability. It provides a regular, tax-free income to help you cover your living costs until you can return to work or retire.

This type of insurance offers peace of mind and financial security. It’s especially valuable if you rely on your income to pay for essentials like rent, mortgage payments, or bills. Let’s explore how it works and how it can help.

How Does Income Protection Work?

Income protection policy works by replacing a portion of your salary when you can’t work because of health issues. Here’s how it typically functions:

Choose a Policy

  • Decide how much of your income you want to protect (usually up to 60-70%).
  • Select a waiting period (the time before payments start), which could be weeks or months

Pay Premiums

  • You pay regular premiums based on factors like your age, occupation, and the level of cover.

Receive Payments

  • If you’re unable to work due to illness or injury, the policy pays out a monthly income. Payments continue until you recover, reach retirement age, or the policy term ends.

How Will Income Protection Insurance Help You?

Income protection provides financial stability when you’re unable to work. Most people rely on their income to support their lifestyle. But what happens if illness or injury stops you from working? Statutory Sick Pay is limited to £109.40 per week (as of 2023), and it only lasts for 28 weeks. For many, this isn’t enough to cover basic expenses.

Your income protection policy bridges the gap. It’s particularly important if:

  • You’re self-employed or don’t receive sick pay from an employer.
  • You have dependents who rely on your income.
  • You have significant financial commitments, like a mortgage.

Income protection insurance is a lifeline when life doesn’t go as planned. It provides financial support, allowing you to focus on recovery instead of worrying about bills.

Want to learn more? Fill out the form below and we’ll contact you to arrange a chat.

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FREQUENTLY ASKED QUESTIONS

Does income protection cover redundancy or job loss?

No, income protection insurance is designed to provide financial support if you’re unable to work due to illness or injury. It doesn’t cover unemployment resulting from redundancy or other non-medical reasons. If you’re concerned about job loss, you might want to explore other types of insurance with us to ensure you have the right protection in place.

Absolutely. It’s perfect for self-employed people who lack the safety net of sick pay, making income protection particularly valuable. Policies can be tailored to cover a portion of your income if you’re unable to work due to health issues, ensuring you can manage your expenses during recovery. We’ll go through all the details with you, so you can make an informed choice.

Unfortunately, no. Income protection insurance policies don’t have a cash-in value. This means that if you don’t make a claim during the policy term, you won’t receive any money back. Some insurers may offer policies with a return-of-premium feature, but these often come at a higher price. Get in touch and we’ll run through all the details with you.

While both provide financial support during health-related challenges, they serve different purposes. Income protection offers regular payments if you’re unable to work due to illness or injury, covering a range of conditions. Critical illness cover, on the other hand, provides a lump sum payment upon diagnosis of specific serious illnesses. The choice between the two depends on your personal circumstances and financial needs. If you’d like to explore both options we’d be happy to help.