What is Income Protection Insurance?
Income protection cover is designed to pay out a regular tax-free amount should you lose your job due to ill-health or an injury. You can choose from a long-term protection plan or a short-term one depending on your requirements and circumstances.
Long-term Protection Plan can provide regular payments until death, retirement or until you are able to return to work – whichever event happens first.
There are 3 main plans:
Age-Related Plan – These may start off with low premiums but will rise by an agreed amount every year
Reviewable – This means that the policy premiums can be reviewed (usually every 5 years) so your payments could go up as well as down with around 30 days notice
Guaranteed – You agree on a fixed premium rate and this is what you pay annually unless you change your level of cover.
Choosing the Best Income Protection Plan
There is more to income protection cover than comparing the cost. You have to take your occupation and many other factors into consideration to find the best plan/s to suit your individual circumstances. We can compare income protection insurance plans from the whole of the market in order to offer our advice in respect of the options available to you and provide a report confirming our findings and the reasons for our recommendations.
For guidance on your protection requirements and a no obligation quotation talk to one of our financial planners today.