Income Protection
Your household income pays the bills, puts food on the table and allows you to enjoy days out with family and friends. Your income gives you everything and yet it’s the least considered insurance when it comes to protection planning.
Income Protection plans insure an individual’s health rather than their life. Whereas critical illness plans pay a capital sum on the occurrence of certain specified medical conditions, these plans pay the income benefit following any illness or injury that is not specifically excluded.
There are a vast number of illnesses and injuries, which prevent people from working. Illnesses, which would not result in a claim on a critical illness or life assurance plan, (stress and bad backs for example) could result in a claim under the plan.
You would typically set the policy up to cover your working life be that 60 or 65 so that in the event of a claim you know that you will have enough money to replace the lost income.
Criteria we look for when considering policies are:
- Claims history
- Financial Strength of the provider
- Definitions of disability – own occupation always recommended over task based policies
- Underwriting criteria
The cost of these policies will depend on your current occupation, as some are more prone to claims than others, the term of the policy, your medical history and also the deferred period chosen. i.e. how long you are off work before you can start to claim. As these policies can be quite complex it is recommended that you seek the advice of a professional before considering taking out a plan.
For an initial enquiry or a comprehensive financial review please email enquiries@pennymatters.co.uk
