What is Income Protection Insurance?
Income Protection Insurance is a policy that pays you a tax-free weekly or monthly payment direct to you if you have the misfortune of being unable to work due to accident, sickness, injury, unemployment or redundancy.
This type of cover provides you and your family peace of mind so you can be sure that your regular monthly bills, such as mortgage, rent, gas & electricity and food shopping, are taken care of should you no longer receive a regular income due to unexpected redundancy or accident and sickness.
This type of insurance is arguably one of the most important insurance policies you can take out as it will maintain your lifestyle at a time when stress levels are at their highest. Income protection takes a huge weight off of your mind knowing that there is money coming in to the household to pay the bills, and allows you the breathing space to look for your next career path. If you are signed off work due to an injury or illness, income protection can give you the time you need to recover at the correct pace, and not be forced to rush back to work just because you have no sick pay entitlement outside of your statutory sick pay. Get Quotes…
With Job Seekers Allowance paying less than £80 per week, and Statutory Sick Pay paying less than £95, they are no longer a viable safety net to fall back on if the worst happens. Because of this, Income Protection Insurance is becoming more and more popular among all ages and demographics throughout the UK.
Cover Up To £2,500 pm
Income Protection provides financial peace of mind if you are unable to work. Options for income protection include; Short term income protection provides cover from 6 to 12 months and up to £2,500 pm & can cover either accident, sickness or unemployment or all of these.
Long term income protection typically covers up to 50% of pre-incapacity earnings (the income benefit is paid tax free) for a defined term e.g. until age 60 and covers income if you cannot work due to ill health after a set period e.g. 13 weeks.