An Income Protection policy aims to give you an income if you can't work in the event of sickness or illness.

This can be anything up to three-quarters of your normal wage, less any state benefits you get. For the self-employed, insurers usually base the level of cover on your taxable income at the point of a claim.

There is a period following the accident or illness which must elapse before the policy begins to pay. This can range from a month up to two years and is known as the deferment period.

Premiums are dependent on the monthly income required, age, current state of health smoker status and occupation. The deferment period also affects the premium, with a shorter period resulting in higher premiums being required. All pay-outs for income protection are tax free and usually continue until you recover or you reach your selected pension age / term of the policy.  Income protection is one of the more expensive options of insurance. It does not cover unemployment or redundancy.

Benefits of Income Protection

• The policy pays out a benefit each month - this will help a policyholder keep up the payments on their mortgage, bills, food, etc.
• Tax Free - The monthly benefit is tax free.
• Monthly Benefit up to 65 - The policy can pay a benefit each month up to the age of 65.
• Peace of mind - if you are incur a long term injury or illness, you know that your policy will protect your income. 

For further assistance, call us on 0800 612 7688.