Income Protection
Income Protection (IP) policies are designed to provide a regular tax-free income to replace employed or self-employed income that is lost if you can’t work due to illness or injury. It is income protection insurance, not mortgage payment protection insurance. There is no payout in the event of unemployment.
At the outset you choose your waiting period and level of cover. In the event of a claim payments will continue indefinitely until you return to work, reach your chosen retirement age or die, whichever happens first.
The cost of monthly premiums depends on a number of things:
- How much replacement income you want to receive.
- Your age.
- Your occupation.
- Your health.
- Your chosen retirement age.
- Your chosen waiting period.
Naturally, the lower the amount of income you want to be covered for, the lower your premiums will be, so you need to carefully calculate your outgoings, taking account of what state benefits you would be entitled to and any sick pay you might receive from your employer.
The application process for Income Protection is longer when compared to Mortgage Payment Protection however there are fewer standard exclusions, and during a claim payments will continue indefinitely until you are fit to return to work or reach retirement age, no matter how long this takes.
Request an Income Protection quote, or call us on 0800 068 5043 so we can advise you on your needs.