What is income protection insurance?

Income protection insurance (sometimes known as permanent health insurance) is a long-term insurance policy designed to help you if you can’t work because you’re ill or injured.

It ensures you continue to receive a regular income until you retire or are able to return to work.

  • It replaces part of your income – if you can’t work because you become ill or disabled.
  • It pays out until you can start working again – or until you retire, die or the end of the policy term – whichever is sooner.
  • There’s often a waiting period before the payments start – you generally set payments to start after your sick pay ends, or after any other insurance stops covering you. The longer you wait, the lower the monthly premiums.
  • It covers most illnesses that leave you unable to work – either in the short or long term (depending on the type of policy and its definition of incapacity).
  • You can claim as many times as you need to – while the policy lasts.

It’s not the same as critical illness insurance, which pays out a one-off lump sum if you have a specific serious illness.

It’s not the same as short-term income protection, which also pays out a monthly sum related to your income, but only for a limited period of time (normally between two and five years) and can cover fewer illnesses or situations.

How much does income protection payout?

Income protection pays out a percentage of your earnings, usually between 50% and 70%  — and all payments are free of income tax.

You can sometimes get a policy that pays out a higher percentage of one portion of your salary, and less on anything above that.

The Most Selected Income protection features

  1. Rehabilitation Services
  2. Access to GP’s
  3. Second Medical Opinion Services
  4. Hospitalisation Benefit
  5. Claims Processes

Do I need Income Protection Insurance?

You should consider Income Protection if:

  • You couldn’t cover your outgoings if you get sick
  • You couldn’t pay your bills with government benefits (the Employment and Support Allowance pays between £74.35 and £113.551 a week)
  • You wouldn’t get sick pay
  • You’re a single income household
  • You’re the main income earner

We can also help you with:

Life Cover

Life insurance can be a great way to help protect your family financially,

Critical Illness Cover

Critical illness insurance, otherwise known as

Income Protection

Income protection insurance is a long-term insurance policy designed to help you

Family Income Benefit

Family income benefit is designed to pay a regular income if you die.

Building and Content

Home insurance protects you from insured events that damage your home or your belongings.

Private Health Insurance

Private Medical Insurance (PMI) is designed to cover the cost of private medical treatment

Relevant Life Cover

A Relevant Life Plan is a term assurance plan available to employers

Business loan protection

Business loan protection provides a lump sum for businesses

Key person protection

When a key person in a business dies it can have a devastating financial effect.

WILLs and Estate Planning

The vast majority of people put off making a Will for a variety of reasons,