Income Protection Insurance in UK – where to start? How to best protect your income in case you’re unable to work due to sickness or injury?
Have you ever wondered what your life and financial condition would look like if you were unable to work for weeks, months, or even years?
Don’t wait and ensure peace of mind for yourself and your loved ones!
Sample Quote:
| Monthly benefit: | £1,000 |
| Monthly Premium: | £12.88 |
| Guaranteed Insurance Period | to age 68 |
| Maximum pay-out time: | 2 years |
| Insurance Provide | The Exeter |
* This sample quote was generated on 12/04/2024 for a 30-year-old non-smoking male, occupation: factory worker. Insurance term until the age of 68. Deferred Period – 4 weeks. Premiums increasing with age, reviewable.
Every working individual should consider this type of protection first, as it guarantees a regular income (tax-free) in case of illness, accident, injury preventing you from working. Income protection is particularly recommended for self-employed individuals and those whose employer does not provide any sick pay benefits. With this policy, you could gain financial security and regular income even when you could not work for several years.
Income Protection Insurance allows you to ensure financial security while you are unable to work and earn a living due to injury, accident, or poor health. The insurance benefit is paid out monthly, upon confirmation of a specific condition by a doctor. Some common reasons for payouts include broken bones, spinal problems, depression & mental health, heart-related conditions, cancer, and accidents.
Get insured in 3 simple steps:
Free, no-obligation quote
Tell us about your needs and requirements, and we'll present the available options.
Customised offer
After our initial conversation, we'll determine the solutions that are most suitable for you. You'll receive an offer via email, usually within 1 day.
Formalities and application
Formalities and application
What sets us apart?
Security
Prestige Financial Advisers Ltd is an appointed representative of Quilter Mortgage Planning Limited, which is authorised and regulated by the Financial Conduct Authority. Additionally, the majority of the deals we recommend are covered by the Financial Services Compensation Scheme (FSCS).
Experience
With over a decade in the UK market and a track record of thousands of satisfied clients.
Knowledge
All our advisors hold top-notch British qualifications from either The London Institute of Banking & Finance or the Chartered Insurance Institute.
Language
We communicate in plain, understandable language, avoiding unnecessary jargon. Moreover, we are also fluent in Polish.
Choice
We exclusively offer policies from well-respected and trusted insurance firms across the UK.
Accessibility
We cater to clients from all corners of the UK, offering consultations online or over the phone. Each client is assigned a dedicated advisor who handles everything from arranging offers to managing policies.
No Fees
You won't encounter any hidden charges with us. Our remuneration comes from the insurance companies where your policies are set up.
FAQ
What to consider when choosing Income Protection
This policy is characterised by great flexibility, so it’s important to tailor your individual needs to the following factors:
– Type of Incapacity: Insurance companies define incapacity differently, so it’s important to choose an offer that guarantees a return to your current occupation – known as “Own occupation”. Without this option, during a long period of incapacity, the insurer may request retraining and limit the insurance benefit payout (example: a driver with a broken knee, after rehabilitation, still unable to work in their profession, may be asked to find work as an office administrator).
– Deferred Period: This is the initial period of the sickness that will not be counted towards compensation by the insurer. Typically, it is 4 weeks but can be changed to 1 week, 3 months, 6 months, or even 12 months. Permanent contract employees usually have sick pay benefits for a certain period, e.g., up to 1 or 3 months, so they can set a 1-month or 3-month Deferred Period. Self-employed individuals typically choose a 1- or 4-week Deferred Period.
– Maximum Benefit: Depends on your earnings and can be up to 70% of your income.
– Pay-out Term: Depending on the insurance provider, the maximum payout term for insurance benefits while you are unable to work can be 1 year, 2 years, 5 years, or continue for the entire policy duration.
Income Protection Insurance is one of the most complex insurance products and one of the most necessary from the perspective of every person working in the UK. Our professional service will help you consciously choose the most suitable and beneficial option from our wide panel of the most reputable and trusted insurance companies available in our offer.
What Are You Entitled to from Your Employer in Case of Illness?
We invite you to familiarise yourself with our material, where we discuss sick pay benefits for employees in the UK, as well as self-employed individuals and business owners:
For English subtitles, please click the CC button (c)
Is there insurance for incapacity for work (accident and sickness)?
Income Protection Insurance provides financial support in case of inability to work due to accident or sickness. It pays out a regular income, usually a percentage of your salary, until you return to work or reach retirement age. We can also define Income protection insurance as income loss plan because many people who stop working due to health reasons lose their regular income.
Who should consider Income Protection insurance?
Anyone who relies on their income to support themselves and their family should consider Income Protection Insurance. This is particularly important for self-employed individuals, business owners, or employees who do not receive sick pay benefits from their employer. Additionally, Income Protection can be a great income replacement solution for people working through agencies or on ‘zero hours’ contracts.
What is the maximum insurance benefit?
The maximum insurance benefit depends on the insurer and your individual circumstances, such as age, occupation, and health status. Generally, you can usually insure up to 60-70% of your pre-tax income.
How long does the payment from Income Protection policy last?
The payout period depends on the policy. It can range from 1-2 years to reaching retirement age. Generally, the longer the payout period, the higher the premium.
Can I make multiple claims from Income Protection Insurance?
Yes, you can make multiple claims from the policy if you suffer from a different illness or injury.
What is the process of making claims from Income Protection Insurance?
The claims process depends on the insurer but usually requires providing medical documentation confirming incapacity for work and financial documentation confirming your income. After verifying the documents, the insurer will decide whether to pay out the benefit. It’s important to regularly update your medical and financial documentation to facilitate the claims process if necessary.
Can I take out Income Protection Insurance if I am self-employed or own my own business?
Yes, many Income Protection insurance policies cover self-employed individuals or business owners. For such individuals, it is important to determine their average monthly income based on annual personal tax returns and choose the appropriate benefit amount.
How can I choose the right Income Protection policy for myself?
Choosing the right Income Protection policy depends on your individual needs and financial situation. Before purchasing a policy, it’s worth comparing various insurers’ offers, checking exactly what the insurance covers, what exclusions there are, and what the monthly premium is. It’s also important to pay attention to the deferred period and the amount of the monthly benefit/pay-out you will receive in case of incapacity for work.
Is Income Protection Insurance in the UK expensive?
The price of Income Protection Insurance in the UK will depend on many factors, including your age, occupation, medical history, whether you smoke, and the amount of monthly benefit. Above, we presented a sample quote for Income protection insurance (also known as Permanent health insurance) with a monthly compensation of £1,000, which you can start from £12.88 per month*.
*This is a sample quotation – details can be found in the Sample Offer section.
