What is Income Protection Benefit?
An Income Protection Policy will provide regular payments to replace part of your income if you’re unable to work due to an illness or accident. It will pay out until you can start working again, until you retire, pass away or reach the end of the policy term- whichever is sooner.
Typically, the policy will pay out between 50% and 70% of your income if you’re unable to work and can be claimed as many times as you need too while the policy is still in force and meets the criteria.
Is it expensive?
The cost will depend on whether you pay a standard premium (the insurer can increase the premium over time) or a guaranteed premium (premium remains fixed for as long as the policy is in force).
The cost will be affected also by:
- Age
- Occupation
- If you smoke/ have smoked before
- Percentage of income you’d like to cover
- Range of illnesses & injuries covered
- Health
- Family medical history
- The waiting (or deferred) period until the policy pays out
For many families and individuals, income protection insurance can provide ultimate peace of mind. As much as we take care of our health, we never know if we’ll suddenly find ourselves unable to work due to accident or illness, so income protection provides a lifeline in case this ever happens. A simple accident or injury can quickly lead to long-term problems when it comes to your income.
Income protection provides that extra layer of security for you and your family. So that when you’re signed off work and not receiving your salary, you can relax and rest up on the sofa with your Income Protection paying out. Instead of fretting about how to pay the bills next month, stressing, and hindering your own recovery.
