There may be a few exclusions written into an income protection policy which may prevent you from making a claim for that particular reason.
This can vary depending on the provider but can include:
- Pre-existing conditions
- Injuries or illness as a result of drug or alcohol misuse
- Self-inflected injuries
You’ll need to disclose any pre-existing conditions you may have at the point of application.
This means that if you become ill and can’t work due to this illness, you won’t be able to make a claim.
Failure to disclose any conditions is known as non-disclosure and it can prevent a pay out being made.
If you develop an illness or become injured as a result of drug or alcohol misuse, most policies won’t allow you to make a claim as you typically can’t claim for any self-inflicted injuries.
It’s also important to be aware that, although short term income protection can pay out for unemployment, a long term income protection policy won’t pay out for this reason.
However, if you’re worried about protection against unemployment (and it’s within your budget) it’s possible to take out both types of income protection.
You could take out an unemployment only short term policy and a long term policy to protect you against illness and injury.
(At the time of writing this, most providers are currently not offering unemployment cover due to the Coronavirus pandemic).
Alternatively, you could take out a critical illness cover policy to protect your income if you’re unable to work due to illness caused by a critical condition (such as a stroke or some forms of cancer), alongside an unemployment only short term income protection policy.
The list of illnesses you can claim for under a critical illness policy will differ to those included in an income protection policy so it’s best to check the policy terms and conditions.
Why not get in touch and let our team compare critical illness cover quotes on your behalf?