Income Protection Insurance

Income Protection Insurance is worth considering because it ensures you continue to receive an income if you fall ill or become injured and are unable to work.

This type of insurance can be particularly beneficial if you rely on your income to maintain your standard of living and cover essential expenses.

With Income Protection, you receive a regular payout, typically a percentage of your salary, which helps alleviate financial stress during periods of illness or injury. It offers peace of mind, knowing you have a safety net in place to protect your financial stability.

What Income Protection Insurance covers can vary, but generally includes:

• Illness or injury – Coverage for a wide range of medical conditions that prevent you from working.
• Rehabilitation support – Assistance to help you return to work when you are able.
• Partial disability – Benefits if you can only return to work in a reduced capacity.

It is essential to review the terms of your policy to understand the full extent of the coverage and any exclusions that may apply.

Income Protection Insurance will not pay out if you quit or lose your job.

Income Protection Insurance is specifically designed to provide financial support if you are unable to work due to illness or injury, rather than covering unemployment or job loss due to redundancy.

No, Income Protection Insurance only pays out when you are unable to work due to illness or injury, not if you pass away.

If you are looking for a policy that pays out when you pass away, we would recommend Life Insurance.

Here are some examples of illnesses commonly covered by Income Protection Insurance:

• Cancer, including treatment and recovery periods
• Heart conditions, such as heart attacks, angina, and heart surgery recovery
• Mental health conditions, including depression, anxiety, and stress-related disorders
• Neurological disorders, such as multiple sclerosis, Parkinson’s disease, and epilepsy
• Respiratory conditions, including asthma, chronic obstructive pulmonary disease (COPD), and severe pneumonia
• Musculoskeletal disorders, such as back pain, spinal issues, and repetitive strain injuries
• Stroke and its recovery period
• Chronic illnesses, such as diabetes, arthritis, and chronic pain conditions
• Gastrointestinal disorders, including Crohn’s disease, irritable bowel syndrome (IBS), and severe ulcers
• Infectious diseases, such as severe cases of flu, COVID-19, and other viral or bacterial infections
• Autoimmune diseases, including lupus, rheumatoid arthritis, and other autoimmune disorders
• Kidney disease, such as recovery from dialysis and kidney-related treatments
• Liver disease, including recovery from hepatitis, cirrhosis, or liver surgery

Here are some examples of injuries commonly covered by Income Protection Insurance:

• Fractures, including broken bones and recovery periods
• Sprains and strains, such as severe ankle sprains or muscle strains
• Back injuries, including slipped discs and spinal injuries
• Head injuries, such as concussions and traumatic brain injuries
• Burns, including severe burns requiring extensive treatment and recovery
• Joint injuries, such as dislocated shoulders or knee injuries
• Repetitive strain injuries, including carpal tunnel syndrome and tendonitis
• Severe cuts and lacerations that require significant healing time
• Whiplash and other neck injuries
• Eye injuries, including severe damage that impairs vision
• Hearing loss due to accidents or trauma
• Internal injuries, such as those resulting from accidents or blunt-force trauma
• Occupational injuries, including those sustained while performing job duties
• Injuries requiring surgery, including pre-and-post-surgical recovery periods

If you’re looking to take out an Income Protection Policy, start by assessing your financial needs. Determine how much income you would need to cover essential expenses if you couldn’t work.

Speaking to a financial advisor can provide valuable personalised advice. They can guide you through the options and help you choose the best policy.

Once they’ve found the perfect policy for you, you will undergo the application process. This may include health checks, completing forms, and providing any necessary documentation. Once approved, review the policy details carefully to ensure it meets your needs and provides the coverage you expect. Regularly review your policy to ensure it continues to suit your circumstances as they change over time.