An income protection plan is designed to pay out a regular income in the event you are unable to work due to an accident or illness. These types of plans continue to pay out an income as long as you are unable to return to work up until the end date of the policy (typically your normal retirement age). This kind of plan is quite often seen as the foundation of any financial planning, as it is likely that other plans will have to be given up if you do not have sufficient income coming into the household.
Estimated working days lost due to work-related ill health and non-fatal workplace injuries in 2019/20 were 38.1 million (source: hse.gov.uk*), and this policy is designed for anyone who is working (employed or self employed). Many people in the UK believe they are covered by sick pay, but it’s important to understand that sick pay is unlikely to last for longer than twelve months – so ongoing protection is crucial. Plans can be adapted to fit in with any existing protection you might have. As experienced protection advisers, we can help you find the policy that most meets your needs.
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The importance of choosing the right policy
The main benefit of income protection insurance is that you will continue to receive a regular income until you retire, or can return to work. However, some policies protect a portion of your income – often 50% of your gross salary, in the event of illness or an accident. Generally, plans cover most illnesses that leave you unable to work, either in the short or long term, and you can claim as many times as you need to whilst the policy lasts. You may not need income protection insurance if you can get by on sick pay alone, or have enough savings to support yourself, yet for most workers in the UK this type of cover is very important. The price of your policy will of course depend on various factors, such as age, job, current health, whether you smoke or the percent you’d like to cover.
Our highly trained team of protection advisors can help you narrow down income protection policies to find one that most suits your needs, so if you’d like to learn more about how we can help you maximise protection against a loss of income, please contact us today.