Income protection provides regular payments that replace part of your income if you’re unable to work due to illness or an accident.
We believe everyone should at least consider income protection, regardless of your circumstances. If you were out of work due to illness or injury, it can put a major strain on your day to day finances.
The 2 main reasons people are signed off work are depression and back problems, but income protection covers you for any issue that stops you from working unlike a specified condition like on a Critical Illness policy.
The amount of income you are allowed to claim will not replace the exact amount of money you were earning before you had to stop work. You can expect to receive about a half to two-thirds of your earnings before tax from your normal job.
Would you be entitled to any sick pay from your employer other than Statutory
Sick Pay (SSP)?
Do you know that this is less than £100 per week and will only last up to 28 weeks?
You will receive payments to replace your income until retirement or you are able to return back to work. Your income protection insurance will cover most illnesses that leave you unable to work. With most policies you usually have to wait a minimum of four weeks after you stop work for payments to start. This is called the waiting period. Some waiting periods last up to two years.
The amount of income you are allowed to claim will not replace the exact amount of money you were earning before you had to stop work. You can expect to receive about a half to two-thirds of your earnings before tax from your normal job. However, some people don’t require income protection insurance through work. some employers offer this as a benefit. Your employment contract, handbook or personnel department will have details if this is the case.
When it comes to taking out income insurance there are obstacles that can affect how much you receive such as