Income Protection

Statutory sick pay is currently £109.00 per week. You are expected to continue paying your mortgage, pay your bills and maintain your general expenditure. An income protection policy is designed to replace your income in the event of you being off work and unable to work for a period of time. 

An income protection policy generally pays out up to 65% of your salary, tax free each month, however you can specify lower than this if you wish. With full income protection, the policy can pay out every month until a set period. With a lower cost policy, the pay-out period is generally one or two years. 

Often, if you are unable to work due to sickness or accident, an income protection policy will pay out. Some  policies also include fracture cover and death benefit too. 

An indexed policy will ensure that your cover increases in line with inflation. Your take home salary at the moment will be worth much less in 20yrs time if you had to claim on an income protection policy. By indexing the policy, it ensures that the policy is futureproofed against inflation rises. 

Guaranteed premiums are an option with most providers. By having guaranteed premiums, it ensures that your policy premiums are fixed up until the end of the policy. It is always cheaper to take out a policy as young as you can. 

 Please note, as with all insurance policies, conditions and exclusions may apply.