A Guide to Critical illness Cover
April 26, 2024Insurance, Guides
A Guide to income protection
April 5, 2024
A Guide to income protection
April 5, 2024
What is income protection?
Income protection insurance swoops in with a replacement income if you’re knocked out of work by illness or injury. With options for short-term or long-term cover, there's a plan for every scenario.
How does income protection work?
Typically, you can snag a policy that covers 50-65% of your pre-tax monthly income for a set period. It kicks in after a specified 'deferred' period, which you choose when taking out the policy. This can start from day one of illness, but not before your employer's sick pay runs out. It pays if you’re ill or injured and can’t work for a long stretch of time. You can claim on your income protection as many times as needed while the policy is active. There are plenty of cover options to fit your budget, but make sure you know exactly what you're signing up for. Chat with one of our expert Advisers for the lowdown.
Do I need income protection?
Ask yourself this… ‘If I was unable to work because I was Ill and my income had stopped, could I pay my bills?’. If your answer is a 'no,' then guess what? You probably need it.
How much does income protection insurance cost?
How much you fork out each month (in premiums) depends on the policy and your personal details. Income protection policies cover a wide range of illnesses, conditions, and situations, so it’s crucial to compare offers from different insurers.
Here’s what affects the cost:
- Your age: The older you, the pricier the policy.
- Your job: If it’s risky, expect to pay more.
- Smoking: Smokers and vapers pay more.
- Cover amount: More cover, more cost.
- Waiting period: The longer you wait for the payout, the cheaper it gets.
- Health: Past and current health, BMI, and family medical history all play a part.
Also, consider if you want:
A reviewable premium: It can go up over time.
A guaranteed premium: Stays the same as long as you have the policy.
Guaranteed premiums might cost a bit more upfront, but they offer the peace of mind of knowing exactly what you'll pay down the road.
A reviewable premium: It can go up over time.
A guaranteed premium: Stays the same as long as you have the policy.
Guaranteed premiums might cost a bit more upfront, but they offer the peace of mind of knowing exactly what you'll pay down the road.
Guaranteed premiums might cost a bit more upfront, but they offer the peace of mind of knowing exactly what you'll pay down the road.
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Insurance, Guides
A Guide to income protection
April 5, 2024
A Guide to income protection
April 5, 2024
What is income protection?
Income protection insurance swoops in with a replacement income if you’re knocked out of work by illness or injury. With options for short-term or long-term cover, there's a plan for every scenario.
How does income protection work?
Typically, you can snag a policy that covers 50-65% of your pre-tax monthly income for a set period. It kicks in after a specified 'deferred' period, which you choose when taking out the policy. This can start from day one of illness, but not before your employer's sick pay runs out. It pays if you’re ill or injured and can’t work for a long stretch of time. You can claim on your income protection as many times as needed while the policy is active. There are plenty of cover options to fit your budget, but make sure you know exactly what you're signing up for. Chat with one of our expert Advisers for the lowdown.
