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.
such situations it is important that you (and your
family) are not hit by a 'double whammy'
Income Protection - the essentials
other products available designed to protect you against loss of
income. For impartial information about insurance, please visit
the website at
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.
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.
Might Need Income Protection?
anyone who does not get paid by their employer indefinitely if
they are off sick from work should consider an income protection
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
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.
the difference between Income Protection and Accident, Sickness
and Unemployment (ASU) Cover?
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
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.
Claims Can Be Made?
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.
ASU policies will only allow a single claim, at which point the
policy will be cancelled.
Use It To Cover Your Mortgage?
protection will pay out long term, until the return to work or
ensure that any outstanding mortgages can be covered over the
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.
Affects The Premium You Pay?
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.
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
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 ▼