Why should you get Income Protection Insurance?

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What is Income Protection Insurance?

Every year, there are over one million people in the UK that find themselves unable to work due to serious illnesses or injuries. Income protection insurance is designed to provide you with cover if you cannot earn an income for those reasons. It’s important to differentiate income protection from critical illness insurance which pays out a one time lump sum if you fall seriously ill. 

Instead, income protection provides a long-term insurance policy which usually pays out until retirement, death or your return to work. Short term protection that lasts for one or two years is also available at a lower cost, providing you with ‘back to work’ help if you’re off sick for a while. This will help you to survive if you are unable to get by on savings or sick pay from work and will provide you with the ability to keep paying the bills. 

Formerly known as permanent health insurance, income protection cover ensures you receive a regular income if you are unable to go back to work by:

    • Replacing part of your income if you are unable to work due to accident, illness or disability.
    • Providing a pay out until you can start working again.
    • Income protection insurance covers most illnesses that leave you unable to work either in a long term or short term capacity.

Our qualified insurance brokers

Our specialist Insurance brokers are here to help. Feel free to give them a ring to discuss your Income Protection Insurance policy options.

Do I need Income Protection Insurance?

Only a minority of employers provide support whilst their staff are off sick from work. Given the low level of state benefits available, everyone of a working age should consider income protection to safeguard your income and quality of life if you should ever fall ill or have to deal with an accident or disability.

With 1 in 4 adults in the UK not having any savings, due to high monthly outgoings and attempts to clear substantial debt before putting money away regularly emerging as the main reasons. If you are in a similar position, then income protection will provide you with the financial security you need.

Factors to consider when choosing Income Protection Insurance

  1. If you are employed, do you have sick pay to fall back on? If so, how long is this paid for?
  2. If you are self-employed, what would you do if you couldn’t work if you fell ill or became injured?
  3. Can you afford the level of cover you need? Setting premiums at an affordable level is important to ensure that you are able to cover outgoing payments if you do make a claim.
  4. We advise you take out an additional cover called waiver of premium so as in the event of you making a claim the provider will pay your monthly premiums for you. Waiver usually only adds a few pounds to the monthly premium.
  5. Where possible we will also guarantee the premiums for the life of the policy so as the monthly cost will not increase regardless of your health or claim history. 
  6. We will speak to you about what cover your employer provides, as Income Protection policies have a deferred period or waiting period before they pay out. The longer the deferred period the cheaper the premiums will be.

What Income Protection Insurance cover is right for me?

With income protection insurance, getting the right policy is vital. Different from critical illness insurance and short term income cover, income protection insurance provides you with long term cover that can help you throughout the remainder of your working life by providing you a pay out that is equal to a percentage of your earnings, usually between 55% and 60% and all payments are free of income tax .

If you become ill or suffer an injury during your working life, an Income Protection policy can help protect against any possible loss of income. This type of insurance can be all encompassing, providing you with security that’ll keep you afloat for the remainder of your working life through the premiums you decide upon and your individual circumstances. Factors that affect the amount you pay are:

    • Job
    • Age
    • How much of your income is covered
    • Health
    • When you want the policy to end
    • Deferred period

Payments usually start after any sick pay ends or other insurance stops covering you. The longer you wait for payments to be made, the lower your policy premium can be.

Working closely with Aviva, The Exeter and other providers, we are able to find the best income protection insurance cover for you, allowing you to have complete visibility of premiums and the decision to choose what you would prefer to be covered for.

We work closely with a range of Insurers to ensure we find the right cover for you

What can Mortgages and Insurers Solutions do for you?

Here at Mortgages and Insurers Solutions, we want to ensure that our customers find the insurance cover that fits their life perfectly. It can be hard to navigate through lists of policies that providers supply, and it can be easy to take out a policy that is not relatable to your situation, yet still be paying for them.

To avoid any confusion, we take the time to understand our customers wants and needs and provide the best insurance cover based off of this.

With exclusive deals and policies that we manage with our Insurance partners, we work hard to establish tailored insurance cover that would otherwise be difficult to find.

For specialist advice regarding anything to do with income protection insurance, we are always here to give you the information that you need. As income protection insurance can save you and your family a lot of financial distress, please get in contact via our details below.


We look forward to hearing from you!

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