The Value of Income Protection

What is Income Protection Insurance?

This type of insurance provides regular income if you are unable to work due to injury or illness. This is especially useful when you have large financial commitments, such as mortgage payments.

How it works:

• Income coverage: The amount of replacement income you receive will depend on your salary. A percentage of your income will usually be paid out, which is based on your monthly salary. This tends to be around 50%-70% but will vary depending on the chosen policy and what the lender is willing to offer.
  
  
• Deferred period: It is important to note that there is usually a ‘deferred period’ before the policy takes effect. The timing of this period will depend upon the agreed terms of the chosen policy, but it is usually around 1-2 months. If a longer defer period is agreed with the policy provider, then the premiums could be reduced.
  
  
• Agreed terms: Most policies will have terms that differ from one another. Some are made to cover you for the short term, and others for the long term. Policies may also offer certain benefits up until the age of retirement. If you are unsure or in doubt about choosing a policy, it can be smart to talk to an adviser.

Premiums:

The cost of premiums for these policies can be influenced by a wide range of factors, some of the key ones being the following:

• Health record: Your health, past and present, can be a big factor in determining the cost of premiums. Higher premiums are likely to be charged if you’ve had health complications in the past.
  
  
• Age: Younger people may generally benefit from lower premiums, as they can be perceived by insurers to pose a lower risk.
  
  
• Occupation: If a job is considered high-risk, then the premiums are likely to be higher. These can include job roles such as construction workers and firefighters, for example.
  
  
• Lifestyle: Certain lifestyle choices can increase the price of premiums. Being a smoker can be viewed as a high-risk activity, so the premiums are likely to go up.

We're here to help you make an educated decision

With multiple protection policies available, it can be difficult to know what choice to make. We’re here to help you make a decision that fits your circumstances – we’ll listen to your situation and share bespoke advice that can help you make an educated decision to fit your protection needs.

How can I get advice?

Simply book an appointment with us to discuss your requirements, and we’ll be able to work with you to understand your lifestyle, and let you protect what matters.