The purpose of income insurance is to protect a portion of your income in the event of accident, sickness or illness.
With income protection insurance, the only requirement in order to make a claim on your policy is a signed doctor’s note from your chosen local/general practice.
Income protection ensures that when a doctor confirms to the insurer that your accident, sickness and/or illness is severe enough to prevent you from working to full capacity, you can shortly earn income benefits.
However, at any time, the insurer can ask your doctor for further proof that you cannot work to full capacity.
You can only claim income benefit when you are unable to work at full capacity due to accident, sickness or illness.
Based on current income protection criteria, as of June 2019, your income benefit cannot exceed 60% of your gross annual income.
The primary reason for this is that insurers assume that you will receive some other form of income benefit during periods of accident, sickness or illness.
For example, if you are employed, you will be entitled to Statutory Sick Pay (SSP).
This can be paid for up to 28 weeks. Although, most companies offer SSP for a 13-week period.
However, SSP is not available for people who are self-employed.
Therefore, to ensure some form of income during times of accident, sickness or illness, self-employed people often place greater emphasis on arranging income protection insurance.
There are two different types of income insurance – Low Cost and Standard.
The key distinction between them is the duration of a claim.
With Low-Cost, income benefit can be claimed for up to 2 years.
This suits most of the working population because it is unlikely that an accident, sickness or illness will endure for over 2 years.
Whereas, with Standard income insurance, benefit can be claimed often up to retirement age.
Therefore, this type of insurance may be more suitable for people in a Class 4 occupation – where risk of long-term injury is high.
As you would expect, low-cost is cheaper than standard income insurance.
Contact Us
For further information on income insurance, please click the ‘Contact Us’ button and submit an insurance enquiry form.
Our advisers would be happy to arrange a free consultation to discuss your requirements in depth.
Authorised and regulated by the Financial Conduct Authority. No: 301141
This website uses cookies to improve your experience. We will assume that you are aware. Please opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy
Privacy Overview
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.