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Income Protection Insurance, also referred to as permanent health insurance, provides a consistent income in the event that you are unable to work due to illness or disability. It continues until you are capable of resuming remunerated employment or when you retire.
The amount you can claim doesn’t exactly replace your prior income, but it usually amounts to approximately half or two-thirds of your pre-tax earnings from your regular job.
This difference is due to deductions related to state benefits, alongside the fact that the policy-derived income is non-taxable.
You won’t be able to immediately claim Income Protection Insurance payments if you fall ill or get disabled. A minimum waiting period of four weeks applies, but payments can commence up to two years after ceasing work.
This is because immediate financial support might not be necessary if you’re entitled to employer sick pay or can claim statutory sick pay for up to 28 weeks after leaving work.
Various other forms of illness insurance, such as Critical Illness Cover, are available, so it’s important to compare Income Protection Insurance with alternatives before making a purchase.
First of all, verify if your employer already provides it as a benefit and whether you have other forms of illness insurance tied with another policy or your mortgage.
If you already have a policy in place, you will not need to take out a new policy unless you move jobs to a company that does not offer this as a benefit.
Working out whether you need Income Protection Insurance is down to your situation. Everyone is different, which is why it is worth getting a free insurance quote from our advisors.
Explore Your Options
Make sure that you explore all of your insurance options and find the right policy for your unique circumstances.
Investigate all available types of illness insurance to identify the one that suits you best.
For instance, if you’re concerned about the cost, Critical Illness Cover may be a more affordable alternative.
However, keep in mind that Critical Illness Covers a more restricted range of illnesses and for a shorter duration than Income Protection Insurance.
The premiums for Income Protection Insurance can vary. Your premiums come down to the length of your term, current health, lifestyle, age, and medical history
Before signing an insurance policy, ensure you understand the terms and conditions. Look out for exclusions, particularly in terms of pre-existing medical conditions and acknowledgement of other forms of work.
Also, confirm the waiting period before policy payments can commence and the specific amount you would receive if you made a claim.
When deciding on the coverage level for income protection insurance, consider your current take-home pay and any work-related costs.
Also, account for any additional expenses that could arise due to illness or disability.
It is always important to speak to an Income Protection Insurance specialist to get a quote suited to your situation. This way, you can be confident that you have a policy that suits your specific lifestyle and health.
Income protection insurance can be purchased directly through an insurance company or via an independent financial adviser, like ourselves. Speaking to an Income Protection Insurance specialist ensures that you are taking out a policy that matches your individual circumstances.
The cost of this insurance is influenced by several factors including the length of your term, current health, lifestyle, age, and medical history
Bear in mind that if you decide to cancel your income protection insurance within the initial 30 days, you are entitled to a full refund. If the policy is cancelled after the 30-day mark, the refund amount might be less than what you initially paid. Always check your policy’s terms and conditions.
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UK Moneyman Limited is Registered in England, No. 6789312
Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
UK Moneyman Limited is Registered in England, No. 6789312
Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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