income protection insurance
Income protection in the event of ill-health, is designed to replace income when a policyholder is unable to work due to illness or injury. In the UK, benefits are generally calculated based on the percentage of the insured’s salary.
The purpose of an income protection policy is to replace part of an insured policyholder’s income if they are unable to work through ill health, accident or are disabled. A policy will generally pay out until either the insured is well enough to return to work, the end of the policy term, or unfortunately the death of the policyholder. Equally, benefit period policies available with terms of between 1 to 5 years, these plans generally will reduce the premium costs and make income protection more affordable. However, you should note that if an illness continues beyond the benefit term, that the benefit will cease at the end of the benefit term.
Most policies will have an initial waiting period before a benefit payment is made. This is normally referred to as the deferred period. The deferred period can be tailored to fit around employer benefits and provide payment after an employer’s sick pay benefit ceases.
As an example, if an employer grants 100% pay for a period of 8 weeks in the event of sickness. Then the deferred period could be tailored to 8 weeks, so that the policy benefits replace some of the lost income.Apply Online
income protection policy
There are many factors that make up an income protection policy, such as;
- age or non-age costed
- deferred period
- indexation options
- waiver of premium
- benefit payment periods
Due to the complexity of differing insurance contracts and options available, we would highly recommend advice from a qualified adviser. MMPE can help in providing advice with regards to the correct products, benefits and levels of cover required.Apply Online
My Mortgage Experts & Protection Experts Ltd (FCA 937076), is an Appointed Representative of King Mortgages Ltd.
King Mortgages is authorised & regulated by the Financial Conduct Authority (FCA). King Mortgages Ltd is entered on the financial services register http://register.fca.org.uk/ under reference number 803561.
The information contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.