Self employed? Need financial support for time off work?
If you have time off work due illness or injury, then its important to have a source of income within the home for you and the wider family.
What is Income Protection Insurance?
Income Protection (also known as Permanent Health Insurance) is a form of insurance cover that’s designed to accommodate times like these. It pays a weekly or monthly income should the injured person be unable to work due to accident or ill health.
Income protection is particularly useful for those self–employed who do not receive sickness pay, or workers who rely on good health to make a living.
What does Income Protection Insurance cover?
Income Protection insurance covers most illnesses that leave you unable to work. However, all policies are different. There will also be ‘exclusions’ or conditions that aren’t included, such as self–inflicted injury or normal pregnancy.
There are also time implications to insurance pay outs. The cheaper your insurance premium, usually the longer you need to wait for your cover to payout.
What’s the difference between this and Critical Illness Insurance?
Income protection insurance pays out a percentage of your gross salary, net profit, or take–home pay as a payment to you for a select period of time, until you are healthy to return to work. You can also make multiple claims whilst your policy is valid.
Vs
Critical Illness Insurance, only provides financial help if you are diagnosed with one of a stated list of serious illnesses such as cancer. It pays out a single lump sum, which is equivalent to the amount you decide on when you take out the policy. Once you’ve claimed, the policy comes to an end.
Is Income Protection Insurance for me?
It’s worth taking time to think carefully about whether Income Protection Insurance is for you. It’s also a sensible idea to discuss your options with a financial adviser as not all income protection policies are the same.
