Income Protection Insurance

Income Protection

What is it?

Income protection policies are designed to provide income if we are unable to work due to illness or injury. They can be either long-term plans (Income Protection policies) or short term annual / bi-annual plans (known as Sickness / Unemployment cover).

Income protection plans are designed to replace the income (or part of it) that we lose if we cannot work. They generally provide this cover from the date the policy goes ‘on risk’ to the date of our planned retirement, although they can be tailored to any period of time.

Your employer may provide cover for a number of weeks or months, and the income protection policy is normally designed to dovetail with that, in order to provide cost effective income protection, for the long term. Such polices stay in place even after you recover, and provide cover for future periods where you may lose income due to illness or injury. As such they are extremely valuable and provide an enormous amount of peace of mind and surety.

Given that almost everything relies on our income, we can clearly see that if we lost that income, then the world as we know would deteriorate very quickly indeed.

Income protection plans do not provide a lump sum. If you feel that you would benefit from a lump sum payment, then you would also want to consider critical illness insurance which does produce a one-off lump sum payment. It is quite normal to put in place both plans as part of a family’s protection strategy.

For accident sickness and unemployment insurance we offer products from a selected panel of providers.

How does it work?

Long-Term Income Protection

You apply for cover, and complete a medical questionnaire. You may be asked to attend your GP for a medical examination. The insurers underwrite your application and may then grant cover. Normally the amount of income insured is limited to circa 60% of your normal gross income. This is normal throughout the insurance industry.

Should you be unable to work due to illness or injury then the insurer will pay you the income level for which you insured, tax free, after a deferred period (normally set to match the period where you receive income from your employer), and subject to the policy conditions.

Accident and Sickness cover or Accident and Sickness and Unemployment cover

This type of cover is normally short term protection and cover can be selected so that the benefit is payable normally for one or two years.

Normally there is no need for underwriting or medical examination.

There are other providers of Payment Protection Insurance (Short-Term Income Protection ) and other products designed to protect you against loss of income. For impartial information about insurance, please visit the website at

Take advice

Not all income protection policies are the same.

Some policies are refreshingly straightforward, and will pay out income if you are unable to do your own job.

Others will not pay out unless you are incapable of doing even the most simple work tasks. Some will not pay unless you cannot carry out the basic activities of daily living. Clearly many of these such polices are unlikely to pay out unless you are very seriously ill/disabled… and these policies are, frankly, to be avoided.

It is vital that you get advice before taking out income protection. As specialist insurance and protection advisers we know the market, we know the insurers and we know the most appropriate products. More importantly, we know the products to avoid!

We will be happy to recommend the most suitable insurer and the most suitable policy for you and your family, bearing in mind your need for cover and your budget.

Our sourcing software can show us just which insurance provider will offer you the lowest price. Price is of course very important when choosing protection. We all want the cheapest premium available.

The quality of cover is, however, a very important factor.

We can guide you to the cheapest policy which gives you the cover you want.

For all protection policies our advice is paid for by the provider in the form of commission. You do not pay us.
Don’t risk your future by relying on a salesman working in a distant location, who you will never meet and whose ethics and standards my be questionable.

We are happy to provide you with a free no-obligation quotation, so that you can evaluate cover and affordability.

Talk to us about the income you want to protect. We will happily explain to you just how we would approach your requirements. Take advantage of our free initial, no obligation, income protection insurance consultation. We think you will like our straightforward approach.

Complete the form at the top right of this page for a call back or e-mail and one of our independent income protection advisers will make contact with you.  Alternatively visit our contact page.

Alternatively, call us on 01482 863127