Finding You The Best Income Protection Deals

Formerly known as permanent health insurance, income protection is an assurance policy that will pay out if you’re unable to work because of injury or illness. Only a minority of employers will support their staff if they are off for more than one year so it’s important to protect yourself and your family should this ever happen. You may be able to get by using savings, statutory sick pay or even state benefits but if not, you’ll need to think of another way to pay the bills which is where income protection insurance comes in.

For most income protection insurance policies:

  • Part of your income will be replaced if you can’t work because of illness or disability

  • The policy will continue to pay out until you can start working again, retire, die or at the end of the policy term

  • Waiting periods vary, but you generally set payments to start after your sick pay ends or after any other policies stops covering you (this usually lowers premiums)

  • Most illnesses that leave you unable to work are covered either in the short or long term

  • You can claim as many times as you need to however long the policy lasts

Do I Need Income Protection Insurance?

Figures show that over one million workers a year find themselves in a position where they are unable to work because of a serious illness or injury. Essentially, you have to ask yourself what would happen if you were in this situation and how you would be able to manage financially. This is particularly important if you have a family, but even those without a partner or children may want to consider it, especially if you are self-employed or your employer doesn’t offer any sick pay.  

Other things to consider include:

  • Government Benefits - You may feel the standard benefits may cover your outgoings but eligibility is getting stricter all the time

  • Savings - If you have enough savings, you may be able to support yourself but it’s important to know how long you could be off work for

  • Sick Pay - Certain employers offer benefits packages providing you with an income of 12 months or more

  • Early Retirement - If you’re close enough to retirement age you may be able to take your pension early

  • Partner/Family Support - Your partner may have enough income to cover both of you while you are unable to work

If none of these options seem viable, then income protection insurance is the best way to ensure you can maintain any outgoings should you be unable to work. It’s also important to remember how this differs from critical illness insurance which pays out a one-off lump sum if you have been diagnosed with a specific serious illness.

Accident, Sickness & Unemployment Policies (ASU)

As well as protection from any kind of illness or accident, you can also protect against unemployment if you lose you job through no fault of your own such as involuntary redundancy. ASU policies were traditionally sold with mortgage products and typically pay out a proportion of your income for a set period of 12 months while you recover or look for a new position. Insurance companies that provide ASU are careful to investigate your individual circumstances so it’s important to fully disclose everything or your policy may be invalid if you eventually need to make a claim. ASU policies are generally cheaper as they’re sold without full medical underwriting but it’s important to compare them with income protection closely as one policy may be more suitable than the other.

How Much Does Income Protection Insurance Cost?

Like any other insurance policy, the cost of income protection will vary based on the following factors

  • Age

  • Occupation

  • Whether you are a smoker or have previously smoked

  • The percentage of income you want to cover

  • Length of waiting period before the policy will pay out

  • Range of illnesses and injuries covered

  • Your current health (any existing conditions, weight, family medical history)

At Mapps, we can help you make the right decision when it comes to all forms of income protection insurance and compare offers from many different providers to ensure you get the best deal. We operate on a “whole of market” basis meaning we are not tied to any particular group of insurers and have established ourselves as one of the very best independent protection brokers in County Durham.

Please feel free to get in touch with us today for a totally free consultation.