Income Protection Insurance
Features of Income Protection Insurance
- Provides a replacement income when you become sick or injured.
- Unlike plans provided through employers that can end if you lose your current job, personal income protection insurance plans cannot be taken away from you.
- Income protection insurance costs and options are highly dependent on one's occupation: a person with a dangerous occupation is more likely to become disabled, so will have higher costs and fewer options.
- Proportionate benefits may be payable if you return to work on a lower income.
- The amount of coverage you purchase cannot exceed a specified percentage (tyically 50% or 66%) of your current earnings (ie. you cannot insure what you do not have). 66% of you income may not sound like enough to survive on, but the money paid from a disability insurance claim is tax free. After taxes, it is approximately equal to your regular income.
Options
- You can select the monthly income you receive while on disability.
- The deferment period (the time you have to wait between become disabled and receiving your first check) can be 1, 3, 6, 12, or 24 months.
- You select the age that your coverage ends (typically between age 50 and age 65)
- Increasing benefit: benefits increase during the course of a claim to keep your benefits consistent with the cost of living.
- Replace lost income during times of disability
- Provide money to pay business overhead in your absence
Common terminology found in Income Protection Insurance
Prefer to talk to a live person?
Call 0845 051 2601
(calls charged at local rates)
Home | Contact Us | Free Quote







