Features of income protection insurance

The most important income protection features to understand. This is not the same as for health insurance , where the waiting period starts from when you first buy your insurance policy. A policy is typically more expensive with a shorter waiting period. Income protection insurance.

Protect against accident and sickness, unemployment or both - tailor to your budget and needs.

IPI policies were formerly called Permanent Health Insurance. Back to work support and career break options. Teachers Sick Pay Guarantee. Specific features for Doctors and Surgeons. It covers up to of your income for a set period of time (e.g. six months, until the age of 65).

There are two ways you can choose to insure your income : agreed value ,. Better still, up to of your income is covered.

This insures you for a set level of income and will pay you until you can return to work or for the agreed period – whichever is sooner. Cover up to of your monthly income Get a monthly payment if you’re off work due to sickness or injury. Insure up to of your monthly income up to $10per month. The first is called permanent health insurance (PHI) – not to be confused with private health insurance that covers medical costs.

PHI means you can protect a portion of your income – often of your gross salary – in the event of illness or an accident. It’s easy to find the best income protection. Compare brands and features side by side or get quotes from award-winning insurers. Your adviser will help you decide if this plan is right for you. Benefits paid are usually a multiple of the monthly income protection benefits, such as five months worth of income replacement.

Conditions will often apply to this payout that will not apply to term life insurance. It pays a proportion of your lost earnings so you can concentrate on looking after your health. Insurance premiums are waived while a monthly benefit is being paid. Reducing income feature, allows the level of cover and premium payments to be temporarily reduced during period of financial hardship or special circumstances.

Premium holiday feature, allows the cover to be put on hold. And with regular money coming in, you can think about what’s best for your recovery. We’ve built our income protection in a way that lets your client choose the cover they want, and change it when their life changes.

We’ll give your client the help they need to get better. If you are unable to work, income protection insurance replaces a portion or all of your income. The benefits paid by the plan can be used for any of your expenses including foo mortgage, or bills that would have been paid for by your wages.

For the plan to become active, your inability to work must be due to an illness, injury, or accident. Picking the right cover means matching your needs and personal circumstances to the best policy available. INCOME PROTECTION BENEFIT MONTHLY BENEFIT The table below shows how the maximum monthly benefit that you can qualify for at the start of your policy is calculated. We do not cover 1 of your total gross earnings because currently tax and national insurance are not deducted from your monthly benefit.

We cover up to of the first £10of your pre-tax earnings, plus up to of the remainder, up to £250a year. It is an important consideration for anyone who relies on an income. It is especially suitable for self-employed people, small business owners or professionals whose business relies heavily on their ability to work. Find out more We use cookies to give you the best possible online experience.

Illness or injury can strike at any time and can lead to serious financial trouble. By choosing income protection , you are taking away the worry of how to support your finances and lifestyle if you were left unable to work through ill health or injury. We simplify, where other insurers complicate. Provides you with an income stream if you’re unable to work for a prolonged period due to injury or illness. Benefit period ends on the earliest of: when you are no longer unable to work.

In the event of injury or illness that leads to loss of earnings, the plan pays a regular monthly benefit to the employer that can be passed on to the employee to help meet their financial commitments, without having to rely solely on state benefits.