What is income protection insurance?
This insurance is exactly as it says on the tin, “income protection”, essential financial protection if you find you for any reason can’t work due to illness or injury. Of course, many of us hope and pray this will never happen, but this is great insurance for financial peace of mind.
Income protection insurance policy provides you the certainty that if you do become unwell and unable to work, you will receive a monthly benefit to supplement a percentage of your income. This helps cover major expenses, such as your mortgage, bills and food.
The good news is that these regular payments will continue to be provided up until you’re able to return to work, giving you the best opportunity to fully recover. Not only does it give you an essential and welcome helping hand financially, it also helps to reduce pressure during such distressing times.
You may also be interested to know that we have different policy options, including protection levels and occupation specific cover – including both group and self-employed options.
What does income protection insurance do?
If you do unfortunately experience sickness or injury that prevents you from working, here’s a step by step breakdown of how the income protection insurance policy will work for you:
An illness or accident occurs, preventing you from attending work.
Once you’re unable to work, call your expert claims team and make your claim under your policy. Your insurer will then guide you through the claims process. This ensures that you have all details to successfully complete the form, including any medical evidence.
If your claim is successful, you’ll need to wait out your deferred period before your monthly tax-free benefits will start.
Once your benefits begin, you’ll be able to claim under your policy up until you fully recover and return to work, retire or until you reach your policies cease date. This will be FULLY explained when setting up your initial policy.
Remember you can continue to claim if your policy is active, and you continue to pay your premiums. Payment will come to a stop once you’re recovered, retired or progressed passed the policy cease date.
Is this insurance policy for you?
Here’s a thought…
If you were to unfortunately experience loss of earnings due to an incapacity to work through illness or injury, would you then manage to pay your large, day to day living costs?
Most people will probably discover that their savings would soon dwindle, resulting further unhelpful distress with the possibility of prolonging your recovery period.
It’s useful to note that on average, between April and June 2018, 2.03 million people in the UK were off the job market and unable to work due to sickness. We often imagine that none of this will happen to us personally, but all insurance is for personal peace of mind and personal protection when not everything goes to plan. This is why its smart to take out income protection to maintain financial wellbeing for personal peace of mind.