Income Protection

When your income stops, longer-term income replacement starts.

If you are unlucky enough to be struck down with a long term illness or disability, it is likely that your income will eventually stop. At this point, you might be able to rely on any savings and investments you have, until they ran out, but then what? An Income Protection Plan can start to pay you when your income either from your employer or from self-employment stops, and it will continue to pay you until you get better, die, or reach retirement age. It is not restricted, like a Mortgage Payment Protection Insurance or Accident, Sickness and Unemployment plan, to just your mortgage payments plus a bit more, as it is related to your salary (or net profits if you are self-employed), and can provide up to 65% of your gross annual income in the event of needing to claim.

Providing long term income replacement can be a very important part of the safety net pf protection plans everyone should have in place, as income underpins everything important to maintaining house and home.

Simply contact us to discuss your requirements, and we will research a large range of insurers to ensure your income continues, whatever happens to you in life.

 

INCOME PROTECTION or MORTGAGE PAYMENT PROTECTION?

Many people confuse Income Protection plans and MPPI / ASU policies as being the same product, when really they are two different insurance policies. You can use the comparison table below to compare them side-by-side.

Income Protection Insurance

Accident, Sickness & Unemployment Cover

Covers

illness and/or disability

accident (disability), sickness &
redundancy/unemployment

How Long Can You
Claim For

Until your desired retirement
age (between 50-70)

A maximum of 12 or 24 months, depending upon the policy & provider

Number of Claims
Permitted

no limit

once

Can policy be cancelled by the insurer?

No, once agreed by insurer, it stays in force until it’s expiry date (when you are aged 50-70)

Yes, as it’s an annually renewable policy. Only usually happens in event of too many claims.

Policy Set Up

Strict underwriting process which may require a medical and GP report, but this results in a much higher chance of
a successful claim

Usually quicker than income
protection but also can carry
a lower chance of a successful claim

Waiting Time Prior
To Claiming

you have the option of a deferred payment
date of 1, 2, 3, 6, 12 or 24 months after the incident available. (The longer
the chosen deferred payment date,
the lower the premiums is)

The usual deferred payment dates
are Back to Day One (after 30 days), 30, 60 & 90 days after the
incident.

What Can You Use
The Money For

Income can be used for anything

Cover is directly linked
to your mortgage and secured loan payments. Also available for tenants to cover rent payments

Returning To Work On a
Lower Salary

If you return to work on a
lower income, a proportional amount may be available.

Not available.

Claim Whilst Receiving
Employers Sick Pay?

You cannot make a claim whilst you are
receiving sick pay from your employer. But if you are not receiving the full sick pay amount, you may
be eligible to claim a proportional amount.

Yes, you can claim whilst you are
receiving sick pay form
your employer

 

It is possible to combine both an Income Protection Plan (IPP) and an ASU plan, so that you are protected for both the short term and the long term. A popular choice is to have an ASU plan to cover the first 12 months, and then an IPP plan to start after 12 months – the best of both worlds !