An insurance policy that provides financial support until retirement if you are no longer able to work – due to accidents, sickness, disability or redundancy – income protection is one of the most important decisions you should make today. *
Yet according to Which, only nine per cent of people have it – despite its ability to ensure you and your family’s quality of life continues even when you are no longer able to work. The vital thing about income protection – as well as the security it will give to you and your family – is that it prevents you from rushing back to work sooner than you are ready – meaning your recovery can take as long as it needs.
Designed to cover the cost of living, most policies will usually pay up to 70% of your income in monthly instalments as unlike a salary, you don’t have to pay tax. Income protection can be used for:*
In general, there are two types of income protection; Short-term, which covers accident, sickness and unemployment and Long-term, which will provide a regular income if you are no longer able to work due to illness and disability.
Most policies usually start after a ‘deferred period’ that you choose – usually between four and 52 weeks, depending on how long your employer decides to pay sick leave for. The longer you choose to wait, the lower your premiums will be.
*Always read Terms and Conditions carefully before signing. Your age, gender, marital status, family history, occupation and lifestyle can all affect what kind of policy is right for you and how much your monthly payments may cost. Not all conditions are covered. You will need to disclose your medical history. Your policy will end as soon as you stop paying your premiums.