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Later Life Issues

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   Protection - Income Protection and ASU

Call: 01603 452686


       Protect your income - while you have one!


Topical Issues


Be Prepared

Once you are in full retirement the need Income Protection Insurance disappear as there will not be any income from employment to protect!


However, whilst you are still in employment and building up your retirement fund any reduction in your income will also likely affect your pension provisions.


In such situations it is important that you (and your family) are not hit by a 'double whammy'


Income Protection  - the essentials

NOTE: There are other products available designed to protect you against loss of income. For impartial information about insurance, please visit the website at

Income Protection


Income protection (also known as permanent health insurance, PHI) is designed to pay you a regular tax-free monthly income if you are unable to work due to illness or injury.


The amount of cover is based on your gross earnings. There is no limit on the number of claims you can make and if you are never able to work again it will be paid until your 65th birthday or when you formally reach retirement age.


Who Might Need Income Protection?


Basically, anyone who does not get paid by their employer indefinitely if they are off sick from work should consider an income protection policy.


Most people would not be able to maintain their standard of living if they had to rely on benefits from Statutory Sick Pay and Incapacity Benefit, so this is a key part of their financial protection needs.


It is not just for people who are employed. Self-employed people may have an even greater need for income protection, as they would not receive any benefits from their employer if they were off work due to illness or injury.


What is the difference between Income Protection and Accident, Sickness and Unemployment (ASU) Cover?


There are some major differences between the two types of cover. Income protection is designed to provide you with a replacement income in the event of a long-term sickness or disability. Accident, sickness and unemployment (ASU) policies also protect your income against illness or injury, but the main difference is that it will also protect your income if you are made redundant.


Benefits are usually payable for a maximum of 12 months but some policies will pay the benefit for up to two years. The premium is based on the amount of monthly benefit you would like to receive, so the higher the amount of cover, the higher the premium costs.


How Many Claims Can Be Made?


An income protection policy can pay out a number of times and the insurer cannot cancel the policy as long as premiums are maintained. Depending on the premium that you are prepared to pay, the monthly benefit payments can be linked to the Retail Prices Index to keep pace with the cost of living. 


However, ASU policies will only allow a single claim, at which point the policy will be cancelled.


Can You Use It To Cover Your Mortgage?


Income protection will pay out long term, until the return to work or retirement age.


This will ensure that any outstanding mortgages can be covered over the long term.


The maximum benefit that can be covered per month is usually 65% of gross income, less any state benefits that you may be entitled to. This enables you to cover both the mortgage repayment and any other bills you may have, helping to maintain a standard of living similar to that when working.


What Affects The Premium You Pay?


There are number of things that can affect the premium you pay such as your age, gender, health and occupation. The likelihood of accident or illness varies depending on your occupation and premiums will vary to reflect this.


For example, a roofer may pay a higher premium than an office clerk due to the higher risk nature of the job.


NFA is able to search the whole-of-the-market for you and help you to find the most suitable provider and the most appropriate policy terms.


FOR A FREE DISCUSSION OF YOU OPTIONS GIVE NFA A CALL or SEND AN E-MAIL. Contact Details can be found at the bottom of this page ▼



I don't want to retire right

now - maybe next year, or

the year after...

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on my work hours already?

     find out more 

Is it a good idea to buy an

Annuity now or is it better

to wait?

Should it be a single or a

joint annuity?

     find out more 

retired couple

What is the right way to

arrange my Investments?

How much risk can I

afford to take?

How much income can I get?

     find out more 

















  Don't be caught unprepared

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You are always Welcome

to contact NFA for discussion of your Income Protection needs and

A FREE Quote


Phone: 01603 452686










Norwich Financial Advice Limited  is authorised and regulated by the Financial Conduct Authority

and is entered on the FCA Register under FCA reference: 706645

Norwich Financial Advice Ltd. is registered in England and Wales; Company No. 8533929.  

Registered office: 74 Muriel Road, Norwich NR2 3NZ, Norfolk, England.