If you were suddenly incapacitated and unable to work, would your household survive on the statutory sick pay from work? If not, you may want to consider an income protection policy.
What is income protection?
Income protection policies provide cover up to an age chosen by you. This is usually to coincide with your selected retirement age. To ensure that the claimant has an incentive to return to work the cover is usually restricted to 50-60% of the individual’s current income.
The benefit is paid out after the deferred period agreed at outset, which is usually 4, 8, 13, 26 or 52 weeks. This ties in with work place sick benefits and is paid as a tax-free income each month until the client either returns to work or reaches their selected retirement age.
The terms of the payment to the individual are defined in the terms of the policy and usually classified into whether the individual can undertake their own occupation, any occupation or any suitable occupation.
The best income protection cover for you?
We can assist in researching, advising on and arranging an appropriate protection policy for you. All of our costs involved are covered by a fee we will receive from the provider, meaning no additional fees to be paid by you. On this basis, there is no harm in reviewing your current situation and there is no obligation to proceed.