Income protection for lorry drivers

Income protection for lorry drivers

Our client

We are often approached by lorry drivers who are looking for protection advice.

We were approached by Mr S, a 51-year-old lorry driver who needed advice on arranging life insurance to protect his mortgage.

This in itself was simple enough, but he told us that he had additional concerns because he doesn’t receive any sick pay from his employer.   So in the event of him being off work due to sickness or accident, he would only receive Statutory Sick Pay. 

The current Statutory Sick Pay benefit is £95.85 per week (April 2020 to March 2021 Gov.UK), which would be insufficient to cover his mortgage of £589 per month plus bills.  This was also particularly worrying as his wife does not receive an income because she looks after their young children and runs their home.

Income Protection

This is essentially, sick pay insurance which pays out a monthly benefit if you cannot work due to illness or injury. The benefit replaces lost income and can be used to help pay monthly bills including mortgage repayments.

Income Protection Insurance could provide you with a tax-free income* and could continue to pay out until you are able to return to work, or until you retire.

Some Income Protection policies can pay out a claim for the entire length of the policy, assuming that the policyholder is ill for that period.  This type of policy is called a Full Income Protection policy.

There are cheaper alternatives to full income protection.  Short term income protection policies pay out for a fixed period of time which is chosen at the outset, typically 1, 2 or 5 years.

Our research and advice

There are many factors which insurance providers take into consideration when looking at cover for people in these occupations.  Lorry drivers, are not viewed favourably, as they work long hours, often throughout the night and abroad, plus the job itself is physical  and carries some risk.

Future Proof has up to date knowledge of the ever-changing landscape of underwriting for all providers in the UK and are committed to thorough research so that you don’t have to. What’s more, our advice comes with no obligation or hidden costs.  You don’t pay us directly but we do get paid by the insurer if you decide to start a policy with them.

The Outcome

We looked at all the above options for our client.  A full income protection policy providing a benefit of £1,800 per month would cost £179.46 per month, but was beyond his budget.

However, we were able to assist him in arranging a Short Term Income Protection policy which would provide a monthly income of £1,800, for a period of 1 year should he be unable to work due to ill-health, or accident for a period of more than 1 month.  The policy will run until he reaches retirement age of 67 years old, for a monthly premium of £43.20.

Mr S was relieved to be given the peace of mind that he and his family would be financially secure should he suffer ill-health.

Client Id: 97108712

*The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.

Please note that any premiums mentioned are indicative only and based on this specific case study/ example. Which is shown for information purposes only. Your own circumstances will determine whether the amount payable is more or less than the figure quoted.

Next steps

Whilst you are welcome to get a quote online, we would recommend you speak to one of our advisers.

Any quote that your adviser provides you with will take into account your circumstances and medical history, as well as your budget!

An online quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.

Call Freephone 0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.

Please feel free to read our Independent client reviews, or read about the team at Future Proof

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Take a look at our handy guides ‘What Cover is Right for me?’

Do you suffer from a medical condition and concerned you can’t secure Life Insurance?  Please view our ‘Medical Guides’ for further information.

Whilst we will make every endeavour to help someone to arrange insurance, there is no guarantee of success.  All applications are subject to underwriting.

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The existence of a link to another website does not imply or express
endorsement of its provider, products or services by us or St. James’s Place.

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