Income Protection Insurance helps to protect your income if you were unable to work as the result of an accident or sickness.
Income Protection Insurance could provide you with a tax-free income and could continue to pay out until you are able to return back to work or until you retire.
How does Income Protection Insurance work?
It pays out a monthly benefit if you cannot work due to illness or injury. The benefit can be used to help pay monthly bills, replace income and/or cover mortgage payments. Most Income Protection policies will provide monthly tax-free payments equivalent to between 50% and 65% of gross salary, although some companies will offer up to 75%. This cover does not typically include redundancy cover.
Who would benefit from Income Protection Insurance?
- Employed people: illness or injury could render you unable to work and you could suffer from a loss of income during this period.
- Self-employed people: a long-term illness or injury could threaten your whole livelihood.
- Single people: an Income Protection Insurance plan could help provide financial security and peace of mind.
- Housepeople: if you suffer from long-term illnesses or injuries, you may need support around the house and with the family. Any income paid out from this policy could help cover the cost of domestic support etc.
To speak with one of our advisers, who will be happy to discuss your options and provide you with a quote (which will always be confirmed in writing) from one of the UK’s leading life insurers, please call us on 0800 644 4468Call me back
*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.