Income Protection Cover

What would you do if you could not work due to accident or ill health? If you had a reduced income, how would you pay your bills?
What if you fell from a ladder and injured your back and were unable to go to work on Monday? How generous would your employer be or, worse still, what protection would you have if you were self employed?

We all hope it will never happen but sadly in today’s busy lifestyles it is far too easy to be suddenly struck by an accident which puts you out of action for a lengthy period of time. It is another sad fact that your employer may not provide as much sick pay as you'd have liked and help from state benefits is minimal.
A vast majority of people would find it difficult to survive on Statutory Sick Pay alone and would find it extremely difficult to pay the bills, keep the mortgage going and put food on the table. Plus with government moves to reduce the number of people able to claim incapacity benefit, you may find that in the long term things could get even worse!

Income Protection Insurance (also known as Permanent Health Insurance, PHI or Income Insurance) offers a solution to these problems and provides a tax free monthly income (you can normally specify up to 65% of your gross salary), if you are suffering from an incapacity which prevents you from working. This monthly income would be paid either until you were fit enough to return to work or until your selected retirement age if you are unable to return to work before that age.
Finding a reputable income protection provider that can offer you the income insurance protection you require can become tiresome and hard work. This is where we can help!

As a specialist income protection broker we can advise you on income protection insurance for many years. Specialist advice on income plan protection will allow you to find the right income protection insurance cover at the right price according to your particular circumstances. 

Affect of Occupation on Income Insurance

Occupation is the factor which in most cases can cause the biggest variances in premiums. Because Income Insurance is directly related to you been able to work, the type of job you have has a large effect. If you are in an administration type position you are naturally less likely to injure yourself than if you worked in the construction industry for instance.
That’s not to say that working in the construction industry means you won't get income insurance at a reasonable price. It simply means that you need to do more hunting around. For those with more hands on positions it is generally a good idea to take advice on your needs. A trained advisor will be able to advise which insurance companies are better suited to your specific occupation.

How long should I wait for my Income Protection payout?

The length of time you wait between having an accident and receiving your first payment from your Income Protection Insurance can have a large effect on the premiums offered to you. This period, known as the deferrment period, is usually offered at a 4, 8, 13, 26 or 52 week interval and is usually designed to match your sick pay provision from work.
Along with your employers sick pay, you should also take into account any savings you may be willing to use or other forms of income you might have if you were to be incapacitated. The longer you can stretch the deferrment period, the lower the Income Insurance premiums become but you need to reach a comfortable position where you would be able to sustain yourself and your family for the deferrment period whilst being able to afford the premiums.