What is mortgage income protection and how does it work?…
Income protection payments aren’t tied to a specific financial commitment, so you can use them to cover whatever your usual monthly income would pay for.
Reassured Advice can help you find the right cover to protect your income by comparing income protection quotes from all of the UK’s best providers, as well as smaller specialists.
Why not get in touch today for your free quotes?
How long your income protection policy will cover you will depend on the details of your policy.
Firstly, you’ll need to establish if short-term or long-term income protection is the right option for you, as this will dictate how long you can receive payments for.
Short-term - Short-term policies tend to have a maximum pay out period of up to 2 years. This means you can only receive payments for a maximum of 2 years (although this can vary between providers).
Long-term - Long-term policies offer more comprehensive cover as you have the ability to have your payment period last until retirement, meaning you could receive payments for the rest of your working life.
Once you’ve chosen a short or long-term policy, your payment period will be outlined in your policy. This is the length of time you’ll receive your payments for.
Once you start to receive your payments, you’ll receive them until one of the following happens:
Why not let Reassured Advice compare both short and long-term policies on your behalf to help you find the best income protection solution to meet your needs.
No, income protection doesn’t offer cover in the event of any type of unemployment, including redundancy.
Income protection will only pay out if you become unable to work due to accident or sickness.
If looking for cover to protect you against redundancy, there are other short-term financial protection policies you can take out such as Accident, Sickness and Unemployment.
This policy typically provides cover for up to 2 years and allows you to make a claim in the event you become too ill or injured to work or lose your job involuntarily.
However, please note that due to the Coronavirus pandemic most providers have ceased offering any unemployment cover to new applicants.
Accident, Sickness and Unemployment isn’t something that’s currently offered by Reassured or Reassured Advice.
No, income protection will only cover a proportion of your income if you become too ill or injured to work.
Your loved ones won’t be able to make a claim on your income protection policy if you pass away.
However, a separate family life insurance policy can pay out to your loved ones if you pass away during the policy term.
This could be in the form of a traditional life insurance policy (such as term or whole of life insurance) which will pay out a lump sum to your loved ones.
Alternatively, there’s family income benefit which will provide your loved ones with monthly (tax-free) instalments (similar to income protection).
This is ideal for long-term family planning as it means your loved ones don’t have to budget a large sum of money at an already stressful time.
Why not contact Reassured Advice to compare both income protection and life insurance quotes to find your ideal solution?
While income protection can cover a wide range of illnesses and injuries (as there’s no specific list, as with some other forms of cover) there are some things that won’t be covered.
To find out exactly what you’ll be covered for you can speak to the team at Reassured Advice.
A friendly member of the team can answer any questions you might have and take you through all of your options.
No, you won’t be able to make a claim on your policy unless you’re unable to work.
In order to make a claim, you must meet the level of incapacity that’s defined in your policy.
In regards to income protection, incapacity refers to the inability to work due to illness or injury and will be defined in one of the following ways:
Own occupation - This will allow you to make a claim and receive your payments if you’re unable to fulfil the day-to-day tasks of your occupation. Unlike other definitions of incapacity, you won’t be asked to carry out a different job role and, for this reason, this definition offers the most comprehensive cover.
Suited tasks - With this definition of incapacity you’ll only be able to make a claim if you can’t fulfil your specific tasks or any other job with tasks that suit your skills and experience. This means you may be asked to perform a job that’s different to your usual if you are capable of doing so.
Any occupation - Often this definition requires almost total disability for a claim to be successful as you’ll only be able to claim if you can’t carry out any work at all, including simple tasks such as signing your name.
As income protection is designed to replace lost income, if you’re still able to earn the income that’s protected, it’s unlikely that your claim will be accepted.
Yes, once your claim has been accepted, and your deferred (or waiting) period^ has passed, your policy will pay out to you in monthly (tax-free) instalments.
This is to help mimic the monthly income you would usually receive from working and will allow you to keep up with any financial commitments you have.
Your monthly income payments will then continue until one of the following events occurs:
You’ll also be required to pay for your cover in monthly instalments, these are known as premium payments.
You’ll need to keep up to date with these payments to keep your cover valid and to make a successful claim.
To find out more about income protection why not speak to the team of experts at Reassured Advice?
^The deferred period refers to the period of time before your payments begin and is chosen at the point of application. You can learn more about the deferred period in this comprehensive guide.
No, income protection payments are tax-free.
This is why providers only pay out a certain percentage of your income, rather than the total amount.
Income protection through Reassured advice starts from just 20p-a-day*, why not just in touch for your fee-free, personalised quotes.
What type of income protection you need will depend on your own personal circumstances and your available budget.
As everyone has different requirements when taking out cover, no two quotes will be the same.
Short-term income protection can be a good option for those:
Whereas long-term income protection can be ideal for those:
If you need help establishing what the best option for you is, why not contact Reassured Advice?
The team will take your unique circumstances into consideration and present you with the most suitable options.
Securing an income protection policy doesn’t need to be a tricky endeavour, you can secure a policy by:
Reassured Advice are committed to finding you the best policy at a price that’s within your budget, why not get in touch today?
To make sure you get the most comprehensive cover at the right price, get in touch with Reassured Advice.
The team of experts can compare quotes from the whole of the market on your behalf, helping to save you time and money.
From the application process to providing you with the most suitable options, a friendly member of the team will be on hand to answer any questions you may have.
The best part is quotes are personalised and fee-free.
Income protection through Reassured Advice starts from just 20p-a-day so why not get in touch?
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