Income Protection
It is our ability to generate income that allows us to plan and enjoy an active personal and family life.
In the event of suffering a long term illness all these plans could come 'crashing down' unless we are able to protect our ongoing income.
Income Protection Cover does just that!
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An Income Protection Policy?
Often known as a PHI (Permanent Health Insurance) policy, this will typically provide 50 - 65% of your regular income, continuing until you either return to work, reach your normal retirement age, or your premature death.
Who needs Income Protection?
Anyone, and everyone unless they are lucky enough to have a generous, comprehensive income protection provided by their employer, or such personal wealth that their income would continue regardless of whether they were working or not.
Such people are in an ever shrinking minority, and most will require some form of income protection policy
The detail: -
Tax free income is paid after an initial waiting (deferred) period directly into your bank giving you regular income until you recover (retire, or die!).
The 'deferred' period is usually set to coincide with the period your existing provisions (from your employer, and /or savings) could continue.
The level of income the policy provides can be level, or set to increase (at a fixed amount, or the rate of inflation).
Most policies will cover 50-65% of your regular income. This, together with benefits you maybe entitled to from the DWP should be only slightly less than your net (after tax) earnings prior to being 'signed off' sick. The shortfall is intended to provide an incentive to 'get back to work'!!!
WE CONSIDER INCOME PROTECTION TO BE CENTRAL TO AN INDIVIDUAL'S FINANCIAL PLANNING.
