What is Income Protection
Income protection is an often overlooked option when looking to protect your income against ill health and disability. Unlike Critical Illness cover Income Protection insurance (also known as PHI - Private Health Insurance) pays a percentage of your salary should you be unable to work due to ill health or disability. For many people this type of cover can be more appealing as it will pay out for a broader range of health issues than critical illness, which covers specific named illnesses as defined in its policy schedule
Do you need income protection cover?
You can’t know what’s around the corner for your health, but you can make sure you’re prepared financially.
Think about expenses you’d need to cover if you were seriously ill and couldn’t work. It might be monthly outgoings like rent payments and general bills, or instalments on a loan or a repayment mortgage. If you don’t have savings to fall back on, getting cover can help take financial worry away while you’re recovering or having treatment.
How much income protection cover do you need?
It depends on things like what you want to cover, how much you’re looking to pay each month, and for how long.
The ABI (Association of British Insurers) have created a useful tool to help you estimate how much income protection you may need. Just click below and follow the steps, alternatively just get in touch with us for a quote and one of our partner advisors will be able to give you some guidance.
In a nutshell Income protection insurance provides a regular monthly income should you not be able to work due to a long-term illness or injury which results in a loss of earnings. This insurance pays out until you return to work, retire, die or your plan ends, whichever happens first.
Income protection payouts are usually based on a percentage of your earnings: 50% to 70% is the norm for UK insurers. Sometimes, an insurer might pay out a higher percentage of one portion of your salary (perhaps the first £50,000), and a lower percentage on anything above that.
For example, say you earn £40,000 a year, and you take out an income protection policy designed to pay out 60% of your salary. Over the course of a year, your policy will pay out £40,000 x 60% = £24,000. The good news is that payments from income protection policies are made free of income tax.
What does Income Protection Insurance cover?
Choose from the UK's leading Life Insurance companies
Legal & General
Legal & General, Aviva, Vitality, Liverpool Victoria and Zurich are just a few of the insurers our panel of advisors work with to find you the best life insurance cover. They can help you navigate the various policies to make sure you get the right policy for you. What's more because they work with many of the UK's leading insurers they could help you save money on on a new policy as well as replacing your existing cover.
Income Protection Options
Add optional features:-
When you apply for Income Protection insurance, you can add things like indexation benefit.
Indexation option increases your premium and cover in line with inflation.
Get a quick quote
Got 5 minutes? That’s how long it takes to fill out our short form. Once we have it we will refer you to a qualified and experienced advisor who will provide you with your quote.
Remember, you can add critical illness cover when you apply for life insurance.