Income Protection Insurance
Secure an income for time off work through sickness
If you couldn’t work due to ill health or injury, could you pay the bills or maintain your lifestyle? In this scenario, income protection insurance could provide you with a regular tax-free monthly income. This insurance protects you and your family against the financial consequences of ill health and provides a vital safety net at a difficult time.
Income protection insurance is vital if you’re self-employed and cannot access company sickness benefits. It also provides a buffer against the long-term financial impact of being out of your business. This type of insurance could also be beneficial if you’re employed and your employee sickness benefit isn’t sufficient to sustain a prolonged period of sickness.
Income protection insurance options
Income protection insurance can be complex as there are many variables to consider. We’ll guide you through the options and help you make an informed decision about the appropriate level of cover. Following this, we’ll search the market, evaluate the options and recommend the right policy for your needs. When you’re ready to go, we’ll set the policy up for you.
Get in touch for an initial free, no-obligation chat with an adviser about the most suitable income protection insurance option for you.
Income Protection Insurance FAQs
What is income protection insurance?
Income protection insurance pays a percentage of your income if you’re unable to work due to illness, injury, or disability. Depending on the policy, you continue to receive the payments until you can return to work, your policy term ends, or you reach retirement age.
How is income protection different to critical illness insurance?
Income protection insurance provides ongoing payments to replace lost income if you cannot work due to illness or injury. The payout differs from critical illness insurance, which pays a one-time lump sum if you’re diagnosed with a specified critical illness.
What does income protection insurance cover?
Most income protection insurers cover mental health conditions such as depression, stress and anxiety, serious illnesses and medical issues. Income protection insurance doesn’t usually cover loss of income due to a self-harm injury or certain pre-existing medical conditions.
How much will I receive from my income protection insurance?
The maximum benefit is usually around 50% to 70% of your regular income, although the exact amount will depend on your level of coverage and provider. A short-term policy will stop paying out when the term is over (usually five years or less), whereas long-term income protection insurance will cover you until you reach retirement age or return to work.
Most income protection policies have a deferred period, which is the waiting time between stopping work and receiving your benefit. The minimum deferred period is typically four weeks.
How much will I pay for income protection insurance?
The cost of income protection insurance is influenced by age, occupation, smoking status, health history, amount of coverage, waiting period, and benefit period.
