Smoker income protection insurance

• How long have you been smoking for?
• How often do you smoke?
• What do you smoke?
• Have you experienced any health issues as a result of smoking?
• When did you quit? (If applicable)

• Benefit amount– the ‘benefit amount’ refers to how much will be paid out to you following a claim. It might also be referred to as a ‘monthly benefit’ as you’ll receive pay outs on a monthly basis. You can choose how much you’d like to receive, typically up to a maximum percentage of 50% - 70% of your annual income depending on the insurer.
• Definition of incapacity– a definition of incapacity defines the circumstances in which you can claim on your policy. Most policies on the market use an ‘own occupation’ definition which means you can claim if you become too ill or injured to carry out the duties of your specific job.
• Policy length– also known as a ‘policy term’. This is how long your policy will last for. Through most insurers, your policy will need to end by age 70.
• Payment period– the payment period refers to how long you’ll receive payments for once you’ve made a claim. You have the option of a ‘short term’ payment period which will pay out for a maximum of 1, 2 or 5 years (depending on the insurer) or a ‘long term’ payment period which could pay out to you for the remainder of the policy term if you can’t return to work.
• Deferred period– when making a claim, you’ll need a ‘deferred period’ to pass before you’ll start to receive your monthly payments. You’ll choose how long your deferred period is during the application, common options include 4, 8, 13, 26 and 52 weeks. You’ll need to still be unable to work once your deferred period has ended in order to receive payments.
• Premium type– you’ll pay for your policy in monthly premium payments. Premiums can be guaranteed (remain the same throughout the policy), reviewable (will be reviewed at certain points during the policy term and could increase based on change in risk or age) or age-based (will increase each year as you age).

During the application, you’ll answer a questionnaire which will require you to give the following information:

• Age
• Medical history
• Smoking status
• Height and weight (to calculate your BMI)
• Occupation
• Lifestyle (alcohol consumption and hobbies)

Income protection is just one way that you can financially protect yourself, you might also want to consider:

• Life insurance for smokers – life insurance can provide your loved ones with a lump sum payment if you pass away during the policy term. The pay out can help your family to stay in their home, cover their living costs and help towards the cost of your funeral.
• Critical illness cover for smokers – critical illness cover can be added to a life insurance policy for an additional cost to provide an extra safety net. It means you can make an early claim on your policy if you’re diagnosed with a serious illness (that’s listed in your policy). The pay out could help to replace income while you’re unable to work, be put towards private medical fees or pay for carers.

Life insurance and life insurance with critical illness cover are available through Reassured. Why not get in touch for your fee free quotes?