What is income protection?

Income protection is designed to pay an income in the event of long term illness or incapacity, resulting in your inability to continue to earn income as a self employed person or as an employee of a company. The plan will pay out after a selected deferred period which can range from 1 day to 12 months.

Do I need income protection?

Replacement income provided until you are well enough to return to work.
No need for you and your dependants to rely solely on State Benefits.

A major reason why someone would want to get income insurance is to protect your mortgage, people still need to pay the mortgage if they are unable to work. If you are unable to do this due to illness or injury then you would have to sell up and all that hard work would be for nothing, income insurance protects all the years of hard work you put into your mortgage and indeed investments.

Would you need and can you afford income insurance? If you do not own any mortgage/investments then income insurance is probably not needed, unless you are prone to injury or disease then you may want to consider it.

The premium (the amount your pay monthly or yearly to the income insurance company) depends on each particular person’s situation it includes their age, type of work as some jobs are more likely to have an accident than others (e.g. programmer and builder),and medical history. Also the higher your income the higher the premium will be on your income insurance policy.

Income insurance is very useful for the self employed because if you are employed by a company it is likely they will pay you for your time off during your leave, self employed people don’t have this option.

If you have require any guidance or further information, please call our advisers on 0844 288 2888 and we will be happy to help you make sure you get the plan that best suit your individual needs at the cheapest possible premium.