Helps keep your finances healthy if you can’t work because of illness or injury
What is Income Protection?
Income protection insurance is designed to provide you with a replacement income of up to 70% of your salary* if you’re ill or injured, and can’t work. It helps give financial security and peace of mind, so you can focus on getting better.
What you get from income protection
Up to 70% of your salary*
An income protection policy gives you a monthly amount to replace your income of up to 70% of your annual salary*, depending on the amount of cover selected when the policy is taken out – if you can’t work due to illness or injury, and your sick pay has reduced or stopped altogether. You need to wait for a period of time, known as a deferred period, before you start receiving a pay out, subject to the provider accepting your claim. Insurance providers define your inability to work which affects when a policy is paid out and this is known as their definition of incapacity. This may be based on your ability to do your own job known as own occupation but isn’t always the case.
*Up to 70% less any other income to which you may be entitled e.g. half pay from your employer. Some plans have a lower benefit amount and your financial adviser can advise you on what level of cover is right for you.
There are certain factors that affect applying for income protection and the monthly premium you’ll pay, including what job you do, your age, your medical history, how much of your income you want covered and to what age you want to be covered to.
Life Cover Benefit
Some of income protection insurance plans provide a lump sum death benefit of twice your annual salary in the event of your death. This can help pay bills, mortgage or funeral costs – providing relief at a difficult time.
Tax
Once your claim on an Income Protection plan pays out, the replacement income payments paid to you are tax free.
We're committed to helping you
Our helpful and friendly team will advise you on an income protection plan that suits your needs.
To be eligible to claim from an income protection policy, you must meet the providers definition of incapacity as defined by them in their policy document. Other terms, conditions and exclusions may apply and your financial adviser will go through these with you if we are making a recommendation to you.
If you stop paying your premiums, your cover stops and you get nothing back. Income protection policies only pay out if a successful claim is made. Income protection policies have no cash-in value at any time.
