Income Protection Insurance
Financial stability when things go wrong
What is Income Protection?
Income protection pays you a tax free income when you're unable to work, some common key features include:
• Typically pays you 50-70% of your monthly income
• Claimable when unable to work due to illness or injury
• Some policies allow top up income for those gradually returning to work using reduced hours
• Benefit in regular monthly payments
Income Protection Statistics
Source: Association of British Insurers. Average premium figure accurate as of 01/03/2016.
Why Income Protection?
Income Protection is one of the most undersold forms of protection on the insurance market, despite the fact the risk of needing to make an IP claim is higher than that of other big types of cover such as life insurance or critical illness.
Most people have unavoidable financial commitments and expenses that they need to pay out in order to live their current lifestyle; Income Protection is designed to achieve this even when the insured persons are suddenly unable to work due to an accident or sickness.
Many of the general public believe that if they suffer a loss of earning for some reason, there will be state benefits available to them that will keep them going; in reality this isn't always the case and the average monthly spend of a UK household is significantly higher than the maximum Employment and Support Allowance available.
• According to The Centre of Economic and Social Inclusion, 60% of working families would be entitled to little or no state support if the primary earner in the family had to stop working.
• According to The Office of National Statistics, the maximum Employment Support Allowance is £109.30 whereas the average household weekly spend in 2013 was £517.30.
• The application form for ESA in PDF version from www.gov.uk is 57 pages long, an example income protection application form is around 7 pages long.
Protect Your Income
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