Income protection cover
Help yourself get back on track
What is income protection insurance?
Income protection cover is an insurance policy which pays out if you are unable to work due to an accident, illness, or involuntary redundancy. Income protection will only cover a percentage of your income (usually up to 70%). But the financial support you do receive will help you either in the long or short term.
If you are still debating whether you need income protection cover, then there are a few important things you need to consider as follows:
Is there a time limit on the long-term sick pay your employer provides if any?
Do you have enough savings to support yourself and any dependants if you are unable to work?
If you qualified for government benefits, would the income you receive be enough to sustain your current lifestyle?
No matter how old or healthy you are, it is important to have a plan in place should you find yourself unable to work. Income protection can do just this, and our insurance brokers can help you get the right type of cover for your needs.
How much is income protection insurance?
Premiums for income protection insurance are based on the type of cover you want, your general health and occupation. If you smoke and have a job that involves heavy manual labour, your monthly premiums will likely be more than a non-smoker who works in an office. But that does not mean that it is not still affordable.
Does income protection cover redundancy?
If your income protection insurer provides cover for involuntary redundancy, your policy should pay out if you are made redundant through no fault or choice of your own.
Income protection or critical illness cover?
Critical illness cover works by paying out a single cash lump sum if you are diagnosed with a potentially life-threatening illness that is covered by your policy. In doing so, it helps to alleviate any financial worries you may have, so you can focus on your health.
Income protection insurance can also help to reduce any financial pressures you may have, whilst you are unable to work. But instead of providing a single pay out, it pays a regular income over a set period and covers a wider range of illnesses and injuries.
Ideally, you would have critical illness and income protection cover for ultimate reassurance. But this might not necessarily be suitable for your individual needs and circumstances, which is where we can help.
Life insurance and income protection
Life insurance and income protection provide financial protection should you become ill and are unable to work. But the cover and type of financial support they provide is very different and it is important to know the difference.
A life insurance policy will pay a cash sum to your loved ones if you die during the term of your policy. The amount they will receive is dependant on the type of cover you have. But it is ultimately designed to help your family clear large debts such as a mortgage or just pay for everyday living expenses.
Income protection on the other hand pays a monthly sum to replace your loss of income if you are unable to work. Depending on the type of cover you choose, it can continue to support you until you are fit enough to return to work, or until you retire or pass away.
Having life insurance and income protection cover is certainly worthwhile. As everyone’s needs are different, it may not necessarily be suitable for you. But our life insurance brokers can provide bespoke cover which will suit you perfectly.