Income Protection
Income Protection
If sick pay is insufficient or your employer can’t provide it, income protection insurance ensures a steady income during illness.
What Is Income Protection?
An Income Protection policy protects your pay packet. If you’re ever off work due to illness or injury for a prolonged period of time, this policy is designed to replace your income until you have returned to work, moved to new employment or until the payment period comes to an end.
They payout after what’s called a ‘Deferred Period’ – this is the amount of time you need to be off work before you can claim on the policy and typically it can be anything from 1 month up to 12 months.
An Income Protection policy is also a percentage (%) of your annual salary and is there to make sure you can still upkeep your lifestyle and pay any essential bills.
How Does It Work?
An Income Protection Policy is designed to pay out until you can start working again, able to retire, pass away or reach the end of the policy term. This policy provides regular payments that replace a part of your income lost. They usually pay out between 50-65% of your income. They typically can be claimed on as many times as you need whilst the policy lasts.
Why Choose UKMC for Critical Illness Insurance?
Why Choose UKMC for Critical Illness Insurance?
With so many insurance options to explore, understanding your options can be difficult.
Cue, the expert insurance advisors at UKMC – why not complete our call back form today to discuss your requirements with our team?
Customer satisfaction is extremely important to the team at UKMC which is why we adopt a straightforward, no-nonsense approach and have amassed more than 400 positive reviews on Trustindex!
insurance guide
Why Do I Need An Income
Protection Policy?
Why Do I Need An Income
Protection Policy?
As a homeowner, ensuring you can repay your mortgage and cover essential bills and living expenses if you’re unable to work is crucial. Income protection insurance is essential for maintaining financial stability and protecting your home if you lose your monthly income due to illness or injury.
The need for income protection insurance depends on your personal circumstances, such as your reliance on earned income, financial commitments, and existing safety nets like savings or sick pay benefits. Evaluating these factors can help you determine the value of income protection insurance in providing peace of mind and financial security.
For homeowners or potential homebuyers in the UK, income protection insurance offers crucial support in maintaining financial stability and protecting your home during unforeseen circumstances. It's a vital consideration as part of your overall financial plan.
Things To Consider
Things To Consider
Benefits
Ideal for Self-Employed Individuals
Income protection insurance is essential for self-employed business owners and sole income earners who lack sick leave and worker compensation. It helps ensure your business income continues if you are unable to work due to illness.
Flexible Payout Options
Income protection insurance offers plans tailored to your budget and needs. Choose short-term payouts for immediate expenses or long-term plans providing monthly benefits for up to five years or a fixed period.
Additional Injury Coverage
Beyond monthly compensation, income protection plans can cover extra costs related to injuries based on your specific situation.
Peace of Mind
Income protection insurance guarantees you can maintain your lifestyle and cover day-to-day expenses, even if you can't work.
Considerations
Premiums Affected by Pre-Existing Conditions
Premiums vary based on pre-existing medical conditions like chronic injuries or heart issues. Smokers and those in high-risk jobs may also pay higher premiums due to increased health risks.
Frequently asked questions
Frequently asked questions
How much will it cost?
Whilst there isn’t a set figure, your insurance provider will take into account the following when providing a cost:
- Current job
- Age
- Smoking status
- Current health status
- When you want your policy to end
What happens if I stop working or I'm made redundant?
If you’re unemployed or working fewer than 16 hours a week immediately before your illness or accident, you won’t be able to make a claim.
How To Secure Your Income Protection Policy
How To Secure Your Income Protection Policy
A protection advisor can provide expert advice regarding the market and cover types which can help you to achieve a suitable policy.
At UKMC, we’ve helped many customers find the most suitable policy for their needs, so please feel free to book your UKMC consultation today.
