Income Protection Insurance

Income Protection Insurance offers a backup plan to help with finances should you become seriously poorly

What is Income Protection?

When you are unable to work due to an accident or illness, your employer may still give you some level of income depending on what it states in your employee contract.

However, should you be ‘off sick’ for a long period of time, it isn’t unusual for employers to move employees to ‘statutory sick pay’.

The sudden loss of income can be an incredibly stressful period where you may find yourself struggling to pay essential household bills, such as rent/mortgage, utilities, or childcare.

This can prove to be even more difficult if you are self-employed and have no access to statutory sick pay.

How does Income Protection work?

Income Protection Insurance, although it is similar to Life Cover, does differ, as it pays out in regular payments rather than in a lump sum.

Depending on the level of policy you have, this will offer regular payments in place of your income, typically around 50-70% of your salary until you are able to work again, until you retire, pass away or reach the end of your policy – whichever happens soonest.

In general, it will cover most illnesses that leave you unable to work depending on the type of policy you have and can be claimed as many times as you need to whilst the policy lasts.

It is worth noting that there is often a deferred period before payments may begin, with the most common being 4, 13, 26 weeks and up to a year, and the longer you wait for the pay-outs to start the lower your monthly premium may be.

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How much is Income Protection?

Much like any insurance, no two people are the same and your policy and the cost will entirely depend on your specific circumstances.

There are policies that cover a large range of illnesses and conditions, so it is important to share as much information and detail with your adviser as possible.

Costs can differ and will mostly be affected by:

  • Your age
  • Your occupation, the higher risk jobs will more than likely incur a higher premium
  • If you have smoked/still smoke
  • The level of cover you would like
  • Your current health, including family medical history
  • The deferred period until your policy pays out
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How can Tipping & Webb help?

We understand that it can be difficult to assess and guess the likelihood of illnesses that could happen to you and your family, this is why all of our advisers will speak with you with a sense of compassion and as a human being.

At Tipping & Webb, our clients are at the heart of everything that we do, and we feel that we have a duty of care to ensure that our clients’ needs are fully met. This is why we offer our clients a full financial review of income, assets, outgoings, lifestyle and most importantly your needs for now and the future.

We make sure that we take the time to get to know you and your circumstances so that we can fully understand and advise what kind of cover would be suitable.

We also appreciate that circumstances may change, which is why the service our advisers provide never ends, because we want to ensure that the cover you have is right for you, at every stage of your life.

So, if you are unsure if Income Protection insurance would be suitable for you or if you would simply like a bit more information, get in touch with a member of our friendly team today who will be happy to help.

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