Income Protection

 

If you couldn’t work due to a serious illness, how would you manage? Could you survive on savings, or on your sick pay from work? If not, you’ll need some other way to keep paying the bills therefore you may want to consider income protection insurance.

 

Income protection insurance (which used to be known as permanent health insurance or long-term disability insurance) is a long-term insurance policy designed to support you if you can’t work because you’re ill or injured.

 

• It replaces part of your income if you can’t work for a while because you’re ill or disabled.

 

• It pays out until you can start working again or until you retire or the end of the policy term whichever is sooner.

 

• There’s a waiting period before the payments start. You generally set payments to start after your sick pay ends, or after any other insurance stops covering you. The longer you wait, the lower the premiums.

 

It’s not the same as critical illness insurance , which pays out a one-off lump sum. Income protection insurance pays a percentage of your gross salary or take-home pay (you can decide how much), and you can claim as many times as you need to, while the policy lasts.

 

It’s not the same as short-term income protection, which also pays out a monthly sum related to your income, but only for a limited period of time and usually covers fewer illnesses or situations.

 

As with all insurances – conditions and exclusions apply