Income Protection

Income Protection plans cover people if they are unable to work due to accident or illness.  It is an insurance policy which provides a regular tax-free income if you are unable to work because of illness or disability. The benefit paid is a monthly payment up to a maximum percentage of earnings – often 50% or 60%.

Policies pay out following a period of time off work, known as the ‘deferred period’, and will continue to pay out until work is resumed, or failing that, until the end of the policy term – usually retirement.

If in employment, then the following questions need to be asked. If the answer to all three is no then you may wish to seriously consider some form of Income Protection. If so, call us for a free, no obligation quote.

  1. Will your employer continue to indefinitely pay you a reasonable percentage of your salary if you are off sick?
  2. If not, and you are part of a couple, could you pay all the bills and live on your partner’s income indefinitely?
  3. If not (or you are single) do you have savings you could live off indefinitely?

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