We compare income protection from the UK's leading providers including Aviva, Legal & General, Friends Life and many more. This means you'll be able to find the best income protection policy for you. We've cut our commission by 75%, so you'll always find us cheaper than the main comparison sites. That means an identical product from the same provider for less.
What is income protection insurance?
We all insure our cars and homes, but we often forget to protect what pays for it all: our earnings. Income Protection is designed to protect up to 70% of your gross (pre-tax) salary. If you're off work due to injury or illness, this cover provides a monthly income to compensate for the wage you'd receive in otherwise good health. Paid directly to you, the instalments can be used to supplement personal savings and state-benefits.
How does it work?
When taking out your policy, you must arrange a deferral period for the time between you making a claim and when your payments kick in. Often this is arranged to follow any sick pay you will receive from your employer, and the longer your deferral period, the lower the premiums you will pay. Other factors that will affect your monthly premium are your age, occupation, and the level and term of your policy.
Types of Income Protection
Long-term Income Protection
Long-term income protection is the standard form of cover you'll find. A policy like this will pay you your benefit until you return to work or until you retire, die, or your policy term ends. Crucially, it will pay out for as long as is necessary and for as many times as you need to claim on it. Make sure to read the key facts of each policy to understand how, what for, and when you'll be covered.
Short-term Income Protection
Short-term income protection is only designed to provide your benefit payouts for a limited time, usually around 1-2 years in total. It can also be restricted in the range of illnesses and injuries it covers you for. However, it will be significantly cheaper than long-term income protection. Make sure to read the key facts of each policy to understand how, what for, and when you'll be covered.
Income protection cover with a guaranteed premium means the amount you pay stays the same throughout the policy term. The premium will only go up if you increase the cover. Most policies like this cost slightly more to start with, but provide you with the assurance that prices won't change.
A policy like this will be reviewed at set periods, typically every five years, at which point your premiums could go up or down. You may find, however, that premium payments will start off cheaper than with guaranteed Income Protection cover, and any changes in your health will not affect the reviews.
Need Income Protection Advice call today on 01639 860111
If any personal issues, such as health conditions, family arrangements or the size of your estate, mean that your financial situation is complex, you may benefit from personalised financial advice.
As independent financial advisers based in South Wales, we can provide guidance in these areas to help you effectively manage your finances and find the Income Protection policy that will give you the security you need.