Use our income protection insurance calculator to work out…
The difference between income protection and life insurance is that one pays out to you during your working life and the other pays out to your loved after your passing.
|Income protection||Life insurance|
|Can pay out to you if you can’t work due to illness or injury||Can pay out to your loved ones after your passing|
|Pays out in monthly payments (to mimic an income)||Pays out in one lump sum payment|
|Cover amount (or benefit amount) can be up to 70% of your usual earnings||Cover amount (or sum assured) is decided by you at the point of application and can be up to £1,000,000|
|You can choose between short term or long term cover (this refers to how long you’ll receive payments for)||You can choose between term-based or whole of life cover|
|Can be taken out through Reassured Advice from 20p-a-day ‡||Can be taken out through Reassured Advice from 20p-a-day †|
Despite these policies covering you for different scenarios, 39% of people wouldn’t take out income protection if they had an existing life insurance policy in place.
However, it can be beneficial to have both in place (if your budget allows) to provide a comprehensive cover solution for you and your family should the unexpected happen.
Reassured Advice can help you compare both income protection and life insurance quotes from just 20p-a-day.
This way, you can talk through your needs with an expert and be presented with all your options to help you find your ideal cover solution.
Whether that’s income protection, life insurance or both. So why not get in touch?
Keep reading this complete income protection vs life insurance guide to help you decide which policy option is best for you…
Whether you need income protection or life insurance will be down to your personal circumstances.
As each policy will cover you for different circumstances, it can be beneficial to take out both polices simultaneously (if your budget allows).
An income protection policy to cover you during your working life and a life insurance policy to protect your loved ones after your passing.
Contact Reassured Advice to compare both income protection and life insurance quotes to find the best policy (or policies) to meet your needs.
These policies are often talked about together, but there are some key differences you should be aware of:
While life insurance differs as it pays out upon your passing, income protection and critical illness cover are similar in the fact that they pay out if you experience a period of serious illness.
While they have some similarities, the two options are actually quite different. Critical illness cover will pay out to you in a lump sum, whereas income protection will pay out in monthly instalments to mimic an income.
To find out more you can read our income protection vs critical illness cover article »
Essentially, if you become incapacitated and can’t work, you can make a claim and a percentage of your income will be paid out.
Payments will continue until you return to work, until your payment period comes to an end, until your policy expires or until you retire (whichever happens first).
Yes, you can take out a life insurance and income protection policy simultaneously.
While you can’t add income protection to a life insurance policy, if your budget allows, you can take out both policies separately at the same time.
Both life insurance and income protection can be secured from just £5 a month through Reassured Advice.
However, with both policy types, the exact price you pay will depend on certain key information.
This includes both details about your circumstances and your chosen policy details.
Details taken into consideration to calculate your income protection premium include:
The table below shows a price comparison between income protection vs life insurance:
|Age||Income protection price per month||Life insurance price per month|
Income protection quotes are based on a non-smoker, in good health with an annual income of £30,000. The policy provides cover until age 65 and has a 3-month deferred period
Life insurance quotes are based on a non-smoker in good health for a level term life insurance policy for £100,000 of cover over a 20-year term
Compare income protection and life insurance quotes through Reassured Advice to find the most affordable solution.
The main benefit of income protection is that it can help you to replace lost income during periods of ill health or injury.
Up to 70% of your usual income can be paid out (on a monthly basis), which can be spent on whatever you would use your earnings for.
This means you don’t have to dip into savings, make cutbacks to your daily life or rely on others.
|Can help you to replace lost income if you become incapacitated and can’t earn your usual||Won’t pay out to you if you pass away (although some policies may offer a small lump sum if you pass away while your policy is active)|
|Up to 70% of your income can be paid out||Won’t pay out the full amount of your income|
|Pays out in monthly instalments to help with budgeting||Monthly payment may not be sufficient to cover larger expenses|
|Payments aren’t tied to a specific financial commitment so you can spend them as you wish||If you have a high-risk occupation (or if other high-risk factors are identified) you may pay more for your cover|
|Can be possible to make multiple claims throughout the policy lifetime|
|Can be secured through Reassured Advice from 20p a day|
If you’re unsure if income protection is the right option for you, why not speak to a member of the Reassured Advice team?
The team can be on hand to answer any questions, help you through the application process and provide you with quotes from all the UK’s best providers.
The main benefit of life insurance is that it can provide you with peace of mind that your loved ones will be taken care of financially after your passing.
Having to make life changes to meet a new budget can be stressful, especially at a time of grief.
A life insurance pay out can provide the funds to ensure that mortgage payments or rent is covered, as well as other daily living costs - allowing your family to carry on with their current lifestyle.
|Can provide essential financial support when loves ones need it most||Loved ones will only receive a payment if you pass away while your policy is active|
|A lump sum pay out will be made which can help to cover large expenses (such as a mortgage, funeral costs and/or living costs)||It can be possible to outlive the term of your policy (meaning no pay out is made)|
|There are a variety of policies available (such as term life insurance, whole of life insurance and over 50 life insurance)||Can be possible to pay more into the policy (for example, if you take out whole of life insurance at a young age)|
|Extra safety nets of protection can be added to your policy (such as terminal illness cover or critical illness cover)||You may experience higher premiums if high risk factors are identified during the application|
|Can be purchased through Reassured Advice from 20p-a-day|
Reassured Advice can help to provide you with all the information you need to make an informed decision as to whether life insurance is right for you.
They can also provide you with quotes from all of the UK’s leading providers.
One policy isn’t necessarily better than the other and it can be possible to take out both income protection and life insurance simultaneously.
Speaking to an expert is the best way to determine the best option for you.
The team at Reassured Advice can help you compare income protection and life insurance quotes from all major UK providers, while answering any questions you may have.
So why not get in touch to find your ideal cover solution? Quotes are personalised, without obligation and fee-free.
The best part is, both life insurance and income protection can be secured from as little as £5 a month.
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Yes very pleased with my choice very helpful easy to understand and very pleasant transaction all good!Mrs M Rushworth
Very professional and reassuring. Life insurance sorted in about 10 minutes.Stephen Davies
very courteous and friendly. Polite professional and empathic.Stedroy Fenton
Another happy customer I am. They are very professional and kind. Fully communicative. I recommend.Piotr Stepien
Really attentive during the call, good clear guidance throughout. Well done.Michael Reynolds
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I made the right choice and now I feel relieved that I did.glyn
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Very happy and everything explained well, so glad a took the time to take the call, normally I would say I'm busy. But compared to other company's we save so much more money.Jenny Berry