Guarantee your current standard of
living should the unexpected happen
and you’re unable to work

Income protection insurance is an insurance policy that pays out if an accident or illness prevents you from working. Income protection insurance provides individuals and families with peace of mind and financial security should the unexpected happen.

The money can be used to maintain your everyday expenses while out of work, such as your mortgage, bills and groceries. Income protection insurance provides a regular ongoing income, whereas the comparable critical illness cover pays out a single lump sum.

Income protection insurance pays out around 50%-65% of your regular income if you cannot work due to an illness or injury. Not all policies cover the same illnesses and injuries.

Payments continue until you return to work, retire, die or as otherwise stated within the policy. Some income protection insurance policies have a maximum pay-out period.

Taking out income protection cannot be rushed. There are several key considerations to make sure your policy is worth paying for. You need to consider:

• The level of income coverage you require to maintain essential living costs, while also considering potential medical costs due to the illness or injury.
• The waiting period before you can claim. Policies will include different waiting periods before a claim can be made. Some policies may take as long as a year before a claim can be lodged. 
• Potential tax benefits and alternative policies, such as critical illness cover or personalised life insurance.

The UK Government’s Money Helper states that when it comes to income protection, “[…] the best way to ensure you get what you need is to get advice from an independent financial adviser or specialist broker”. A broker will ensure you only take out the most relevant policy for your needs and preferences by calculating the correct amount of cover required.

The best financial advisers will also schedule reassessments to make sure you’re still using the most suitable policy. Many people take out cover independently but fail to do this, which can make the cover inadequate if they make a later claim.

We never know what’s around the corner, but planning for the unexpected rewards you with unrivalled financial security. 

Whether you’re a single professional or a family with kids and a mortgage, Taylor James insurance brokers are on hand to find the most suitable policy for your needs. Schedule a consultation now.