WHAT IS INCOME PROTECTION?
Income Protection will replace part of your income if you're unable to work due to ill health.
It covers essential outgoings and provides for your family.
You might want to consider unemployment protection too.
HOW MUCH IS COVERED? HOW LONG AM I COVERED FOR?
You can choose a policy that should be built around your own individual circumstances. Some people want to cover as much of their income as they can, others just want to protect mortgage payments.
You can choose how long your plan stays in place, and how long each claim pays out for, too.
I AM SELF-EMPLOYED, CAN I GET COVER?
Yes. Even if you have difficulty proving your income there are options available.
I'VE HEARD BAD THINGS ABOUT PPI. HOW IS INCOME PROTECTION DIFFERENT?
Income Protection works very differently to PPI cover - they're completely different policies.
PPI will cover debts that have been insured, Income Protection provides you with a tax-free income.
WHY CAN'T I INSURE ALL OF MY INCOME?
You very rarely need to: because insurance benefits are paid tax-free, there's no income tax to pay, you might also be entitled to benefits or aid to help make up the shortfall.
WHY DO I NEED PROTECTION IF THE STATE WILL LOOK AFTER ME?
State benefits are low, often means tested and may only pay if you're very severely impaired. An Own-Occupation protection policy pays out if you're unable to do your job - and will continue to pay out until you've recovered or reach retirement age.