What is income protection?
How would you pay the bills if your income stopped because of illness or injury?
Income protection can help. It is effectively your own personal sick pay insurance. It pays you a regular weekly or monthly benefit if you become too ill to work due to illness or injury, so you can continue to meet financial commitments and living expenses.
This type of insurance covers both physical and mental illnesses, and injuries that prevent you from working and earning. You choose how soon after being unable to work you want the benefit to start paying, and this benefit will be paid until you can return to work, or until the end of your chosen claim period. It can provide cover for the employed, self-employed, contract workers, freelancers and business owners. There are lots of options to help tailor cover to you.
Some policies also provide cover to homemakers, as whilst they might not be earning an income, they do ‘unpaid work’ which has a monetary value should you need to pay someone to undertake those responsibilities (such as childcare) in the event of illness or injury.
In addition to financial support, income protection policies can include practical support to help claimants with their recovery such as physiotherapy and counselling.
People are statistically more likely to be off work for two months or more through illness or injury, than being diagnosed with a critical illness or dying before retirement. Income protection should therefore be the first insurance option for most people to consider, and your adviser will be able to discuss the options available to you.
Is income protection for me?
You should consider income protection if:
You don’t have any sick pay through work and don’t have sufficient savings or other financial support to fall back on.
Your work sick pay is limited, and you’d like to ensure you are covered should you be ill or injured for longer than your sick pay would pay for.
You don’t want to have to rely on state benefits such as Universal Credit in the event of you becoming ill or injured.
You have a mortgage, rent or other living expenses that you would still have to cover if you were too ill or injured to work.
You are a full time homemaker and want to ensure there is money to pay for the responsibilities you undertake should you become too ill or injured to do them yourself.
Protection policies now typically offer many added features and benefits to increase the level of cover offered. Some of these are contractual and boost the coverage offered, others are offered in addition to the core product and can be used irrespective of whether there is a claim made. They can include things like:
- Health MOTs
- Access to remote GPs 24/7
- Retail discounts
- Gym and fitness device discounts
- Counselling and bereavement support
- Legal helplines
- Second medical opinion services
Get expert advice
iMAB have specialist insurance advisers who will review your personal and financial information to provide you with a recommendation. There is no fee for this advice or for handling any insurance application. The adviser will answer all your questions and will talk you through the different types of insurance options available and help you understand which are most suitable for your needs. At iMAB we believe that it’s our Mortgage Advisers’ job to help you buy your dream home, and it’s our Insurance Specialists’ job to make sure you understand what insurance policies are available to help you keep it – whatever life throws at you!
Coming to a decision
We understand that making a decision on what cover you should take to protect yourself and your family is important, and that’s why we encourage you to take your time and to ask your adviser as many questions as you like. Apart from buildings insurance, no other insurance policy is compulsory to take alongside your mortgage. Our advisers will only recommend the cover they feel is appropriate for you and your family. They will also make sure that any policies you choose to take are affordable and so will need you to confirm a budget you are comfortable paying.
Make an application
Once you have decided on the cover you wish to take, your adviser will compare all the relevant products available to you and will recommend the package which is most suitable and fits within your budget. They will provide you with a written illustration confirming all the key facts about the recommended product(s) and will carefully talk this through with you. If you then confirm you would like us to apply for the cover on your behalf, your adviser will arrange a mutually convenient time to do this with you.
Get in touch
Our team of friendly advisers are on hand to answer any questions you may have.
Would you like to give us a little more detail about your enquiry? Or would you prefer to arrange a face to face appointment? Send us an email and one of our advisers will be in touch.
Book an Appointment
You can book a video or telephone appointment via our online diary system. Or, if you would like to speak to a specific adviser, you can contact them through the Our People page. Face to Face appointments are also available. Please contact us for details.
Do you have a quick question or would you like to arrange a face to face appointment? Give us a call and we’ll be happy to help.