Income Protection Insurance
Income Protection Insurance: is a policy designed to replace some of your monthly income or a specific financial commitment, Moneyandme.co.uk aim to give you factual information so you can make an informed choice whether it is the right cover for you.
We will try and minimize and highlight the key areas for you and give you some statistics to help make a decision.
Income Protection
Income Protection: The first question to ask yourself is how would you pay the bills if you were sick or had an accident ? How would your mortgage payments be made ? most people do not have this protected because they say it will never happen to me but buy not addressing this issue could lead to your home or goods you have purchased with loans being repossessed.
Don't put your self in this position cover starts from as little as £1.83 for £166 of monthly cover so get your quote free with our family income benefit quote system.
Income Protection UK Statistics
Income Protection UK Statistics: more than two million people in the UK aged between 20 and 64 have been off their work for a period of more than six months in their working life
The British Heart Foundation state that around 2.6 million people will suffer from heart disease annually. Mental health issues are now affecting one in four people during their life time according to the NHS.
More than 4.4 Million people are receiving physiotherapy for back and joint problems in 2005 and this number is set to rise and 80% of people in the UK will suffer from back pain which can often be escalated to more serious issues with returning to work to soon so you can see why income insurance is something you should give serious consideration to.
Income Protection Insurance Aims
Income Protection Insurance Aims: Ok so let us give you some factual information on this type of policy and if you follow the remainder of this page you can ensure you have the right cover that will pay out on a valid claim.
There are around 2.7 million claims for incapacity benefit in the UK every year and as many as 1 million of these are turned down so follow these guidelines and don't become one of these statistics.
Aims To give you a regular income if you suffer illness or accidental injury leading to incapacity and loss of your earnings. This type of benefit can replace some of your lost earnings up to certain limits if you can not work to help meet your expenditure on a monthly basis.
Income Protection Insurance Commitment
Income Protection Insurance Commitment: You must make all regular premiums throughout the term of the policy or the policy will be cancelled within 30 days if you fail to make the payment and no benefits will be paid out in the event of a claim.
All of these types of policies have a time limit on claims so please read the policy document and comply with this as failure to do so may result in your claim becoming invalid. Always check the cover matches your needs and you do not get a shock when you make a valid claim on the monthly amount that is being paid out to you.
Finally when completing the application be truthful about the medical questions asked and your occupation as failure to be truthful could result in a claim becoming rejected.
Income Protection Insurance Risk
Income Protection Insurance Risk: Do not stop paying your premiums or the cover will stop, make sure your cover is always in line with your earnings because these types of policy have a maximum they will pay out which is related to your earnings on the original application you made if you have not notified the provider of changes in your salary.
Other things that may be a risk to your income insurance policy are State benefits rules may change, the benefits paid under this type of policy may be subject to means tested benefits, also the tax treatment of these types of benefit may change in the future.
Who Can Have Income Insurance?
Who Can Have Income Insurance: Most people in the UK can have income insurance as long as you are employed and between the ages of 18 to 60.
How much will my income insurance pay out: This will be determined by the amount of cover you selected at the outset as long as your salary has not decreased drastically from inception of the policy then you should receive what your cover was set at originally.
Income Protection Level Of Cover
Income Protection Level Of Cover: The level of cover you can get with this type of policy is restricted to 50% of your taxable earnings or 50% of your net earnings if you are self employed. Do not get a quote for higher than these amounts unless you expect your salary to increase sharply in the future as these policies are limited to the above.
The cover will pay out on a successful claim after the deferred period has passed and is generally paid in arrears.
The deferred period is what you have selected at the outset of the policy and the longer the deferred period the cheaper your quote will become. Deferred periods are generally between 4, 8, 13, 26 and 52 weeks and the longer you defer then the cheaper the policy will be.
Income Protection How Is It Paid
Income Protection How Is It Paid: The level of cover you have selected will pay out on a successful claim until the following arises in most cases. You are no longer incapacitated, you are no longer suffering a loss of earnings, the termination age of the policy has arisen or you have reached your chosen retirement age, you are remanded in custody or death occurs..
The deferred period is what you have selected at the outset of the policy and the longer the deferred period the cheaper your quote will become. Deferred periods are generally between 4, 8, 13, 26 and 52 weeks and the longer you defer then the cheaper the policy will be.
Income Protection Can I Use As Loan Payment Protection
Loan Payment Protection: If you are considering a car loan or other type of loan or currently have one can you have a loan protection insurance ? the simple answer to the question is that income protection policies can be used as loan protection as long as you stick to the guidelines on this page and notify the insurance company of anything you think may be different to ensure loan insurance is in place.
My loan has started can i still have loan payment protection the simple answer is yes and because personal loans have a shorter repayment term than a mortgage the loan protection should be much cheaper than the mortgage protection.
Income Protection More Facts
Income Protection More Facts: As soon as you have become aware of a claim report it to the income protection insurance company even although you are unsure if the claim will be successful as failure to notify them of a successful claim after a specified period may result in the claim becoming invalid. Review your cover at regular intervals as if you have had a substantial increase in wages then you may be able to increase your cover without medical evidence although each policy is different. On some policies you can suspend your cover for career break, change your occupation without notification and many other benefits but check the individual policy you have selected to see what and what cant be changed or amended.
Income Protection Questions and Answers
Income Protection Questions and Answers: As soon as you have become aware of a claim report it to the income protection insurance company even although you are unsure if the claim will be successful as failure to notify them of a successful claim after a specified period may result in the claim becoming invalid. Review your cover at regular intervals as if you have had a substantial increase in wages then you may be able to increase your cover without medical evidence although each policy is different.
On some policies you can suspend your cover for career break, change your occupation without notification and many other benefits but check the individual policy you have selected to see what and what cant be changed or amended. If you return to work on a part time basis many policies will pay you a reduced amount based on your partial lost earnings.
Income Protection Insurance Important Points
Income Protection Insurance Important Points: Remember that some points of the quote system are flexible to help get the premium to match your budget, the policy has no cash in value at any time, if you die the cover will end and no premiums will be returned, if you stop paying the cover will cease, and most policies carry a 30 day cancellation period in case you change your mind. Please remember all the points above prior to obtaining your quote.
Incapacity State Benefit Information
Incapacity State Benefit Information: At the current time the rate of incapacity benefit you can expect to receive from the Government is £68.95 short term between week 1 and week 28, between week 29 to week 52 the amount will rise to £81.60 and from week 53 you will go on the higher rate of £91.40. The Government intends to change some of the rules and regulations on this type of benefit between 2010 and 2014 but have not yet stated what these changes will be.
To make a claim for incapacity benefit you can call 0800 055 6688 which will take you to the contact centre where an advisor will assist you in the completion of your claim form for incapacity benefit.
Income Cover Summary
Income Cover UK Summary: We hope the information that Moneyandme.co.uk have supplied you throughout this page will help assist you in getting the correct income protection policy to meet your needs and budget. It is our intention to give you enough information to help you understand these policies and any feedback you would like to give us to enhance this service would be gratefully received and reviewed by our team for future changes to this site. Good luck with your quote we hope we have helped you save money.
Other Products and Services
Other Insurance Products: Moneyandme.co.uk offers a large selection of insurance policies including car insurance and income protection policies to protect your car loan repayments in the event of Accident, Sickness or Unemployment which we strongly recommend in the current economic climate. Our aim is to save you money on your Insurance needs whether they be mortgage protection, Life insurance, House insurance or any other products.
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