Income Protection Insurance

What is income protection insurance?

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Income protection insurance protects you with a regular income if you are unable to work and earn a living due to an illness or disability. Also known as 'permanent health insurance', income protection cover will continue to pay you until you are able to return to work or you retire.

Income Protection Insurance

Most household bills are paid monthly and the impact that a potential loss of earnings arising from an accident or illness would be immediate and potentially devastating for the average family

How much does income protection insurance pay me?

Income protection insurance will not replace your regular, earned income with the same level of pay you receive from your normal job. Typically you will receive between half and two-thirds of your pre-tax income. Money you receive from an income protection insurance policy is paid out free of income tax.

How soon will income protection insurance start to pay me?

There is usually a waiting period before an income protection insurance policy begins to pay you an income. If your contract of employment provides you with sick pay for a period of time, and/or you are eligible for Statutory Sick Pay for a further period, then there may be a delay before your income protection insurance begins to pay you an income.

Do I need an income protection insurance policy?

Before deciding to take out income protection, you should check with your contract of employment for any employee benefits that might support you if you become unable to work through sickness or disability.

Depending upon the severity of your illness, you might have already taken out an alternative source of income protection insurance, such as critical illness cover.

For many considering income protection insurance however, despite the 'it will never happen to me' approach, the uncertainties in life will, for the unfortunate few, include such challenges as accidents or sickness, possibly rendering them unable to work. For those with the foresight to take out an income protection insurance policy, these unforeseeable circumstances will hopefully be less of a challenge as their income protection insurance will provide financial help by replacing their lost monthly income in the event that they are unable to work due to accident or illness.

How much will income protection insurance cost?

Monthly premiums will be based on several factors, including the level of income that you want to receive in the event of you becoming unable to work. Other factors taken into account that will affect your premiums include:

How much income protection cover do I need?

The level of income that you would need from an income protection insurance policy should be sufficient to allow you to continue to pay essential bills and meet your fixed financial commitments (such as rent or mortgage payments, insurance premiums, Council Tax etc.).

As a general rule of thumb, if you calculate your current take-home pay, minus any State benefits that you receive and any work-related costs (such as travel costs), and then add any costs associated with being at home - extra heating or medical costs; this will give you a rough idea of what income you would need to remain financially secure.

How can QuoteRack help me with income protection insurance?

We work closely with FCA authorised and regulated independent financial advisers. Your details will be submitted directly to an IFA who will be able to discuss your financial requirements and advise you appropriately, both in respect of your suitability for income protection insurance and also to offer you guidance on the appropriate level of income protection that you might need.

Frequently asked questions

Will I need to have a medical for income protection insurance?

The majority of people who apply for income protection insurance are not required to have a medical. While all life and health insurance applications are considered on their individual merits, the disclosure of a pre-existing medical condition, you might be required to have a medical examination.

This procedure does not necessarily mean that your application for income protection cover will be rejected.

It is also important, when completing the application form for income protection insurance that you provide full details of any and all aspects of your health record. However minor the illness or condition, you should put details on the application form.

How can I get a quote for income protection insurance?

When you click the 'GET A QUOTE' button, completing the online form will send your contact details to an independent financial advisor, who is authorised and regulated by the FCA. He will contact you by phone and/or email to discuss your application in more detail.

If you wish to proceed with an application for income protection insurance, he will guide you through the initial steps without cost or obligation.

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