What is Income Protection?
Income Protection policies help replace part of your regular earned income, after an agreed deferment period, while you are off work. The risks covered can include disability, illness, accidents sustained at work or during your leisure activities.
Your choice of policy depends on your personal circumstances but typically the longer the deferment period the lower the premium. Making contingency for any loss of income should be balanced against your ability to pay bills, rent or a mortgage if you were unable to work for an extended period of time. As part of these calculations you may want to take into account any personal savings and any benefits provided by an employer.
In addition, you may want to further enhance your cover with additional options:
- Such as day-one sick pay if you are self employed or your employer does not offer sick pay benefits (whether arising from occupation or specified leisure pursuits).
- Index linking of benefits to ensure your policy retains its purchasing power in case of long term care
- Short term hospitalisation benefits
Finally, to help you on the road to recovery, we can also help with private medical cover.