Why Income Protection insurance?
- Income protection covers your monthly income should you suffer an accident, sickness or unemployment.
- Designed to cover your core monthly financial commitments such as your mortgage/rent, bills and food.
- Income Protection is the one protection policy every working adult should consider. Which? Money 2013
- Speak to our expert independent advisers today!
What is income protection?
We all insure our cars and homes however we often forget to protect what pays for it all, our earnings.
Income insurance is designed to protect up to 70% of your gross salary in both the short and long term should you be unable to work due to accident or sickness and in the case of short term protection, unemployment as well.
Given the level of government support available and with fewer employers offering long term sick pay above and beyond Statutory Sick Pay, a personal income protection policy is more important than ever.
How does it work?
If you suffer sickness or injury that prevents you from working your income insurance plan will begin to pay a monthly benefit after your chosen deferred period either until the policy ends or you return to work.
It is possible to insure up to 70% of your gross (pre-tax) earnings for anything from 5 years to the normal retirement age with salary insurance deferred periods ranging from 1 month to 12 months.
Actual Income Protection Claims
The table below details real life stories of how an income protection policy has saved someone financially following an illness which left them unable to work.
The information is from Liverpool Victoria's 2011 claims, it demonstrates how anyone can lose their income, regardless of age, gender or occupation, LV's youngest claimant in 2011 was just 22 years old.