Income Protection Advice – Help & Information

Income protection advice or thorough research is the only way to make sure a policy will actually do what it is supposed to.

There are many different types of cover and numerous options available which can make it easy to end up with the wrong solution in the absence of good income protection advice.

Having the wrong cover or having cover set-up incorrectly could mean a claim isn’t paid which would have devastating consequences on family finances.

Being under-insured is an obvious risk but it is also possible to be over-insured which would result in paying for cover that can’t be used.

Request: Income Protection Advice

Getting advice and using a regulated broker has many advantages.

 1/ Access to a wide range of insurers

2/ Knowledge of the income protection market and the types of cover available

3/ Help throughout the application process

4/ Protection from the Financial Services Compensation Scheme if things go wrong

Many people have some form of sick pay from their employer but this often only continues for a short while. Thereafter, statutory sick pay currently stands at just over £80 per week and is barely enough to maintain a meagre lifestyle.

Important Considerations.

Income protection can be tailored to ‘kick-in’ when employee sick pay stops. This time gap is known as the ‘deferred period’.

The longer the ‘deferred period’ is, the cheaper the cover will be because the insurance company will not be paying claims for short term conditions.

People with no sick pay from their employer or self employed people will either need a short deferred period or some savings put aside for a rainy day.

Getting advice about the most suitable deferred period will ensure a claim is paid when it is needed most.

Short term income protection can come in the form of ASU (Accident, Sickness & Unemployment – sometimes just AS cover without the unemployment benefit) and also ‘Budget’ PHI (Permanent Health Insurance).

Long term income protection can come in the form of ‘full’ PHI or possibly Critical Illness Cover which pays a monthly benefit.

Short term cover can pay a claim for up to 2 years but long term solutions can pay claims right up to retirement.

Long term income protection solutions include disability cover based on different ‘definitions’.  These are ‘Own Occupation’ and ‘Work Tasks’.

Cover with the ‘Own Occupation’ definition will pay a claim if any accident or sickness prevents the policy holder form doing their own job.

The ‘Work Tasks’ definition will pay a claim if a person is unable to perform certain tasks and this usually means a more severe degree of disability.

With the ‘Own Occupation’ definition a claim has a much higher chance of being paid but is not available in all circumstances. Getting advice about this valuable option can mean the difference between a claim being paid or not.

It’s important to either fully research the options or get help and advice about income protection and the various products and choices available.

Request: Income Protection Advice

Request: Life Insurance Advice