Income protection

How would you and your family survive financially if you and/or your partner couldn’t work because of an illness, an injury or involuntary redundancy?

For all of us, not being able to provide for our loved ones is a real concern. Being in a situation where we cannot pay the bills because we have lost our income is not a place we want to be.

So how do you protect against this?

Income protection does exactly what it says; it protects against the loss of your income. This can be in the event of illness, injury and/or redundancy.

Having a plan in place can be the difference between making a claim and being able to pay your bills, and having to rely totally on family, friends and the state.

With cover in place YOU have control over what happens at a time where the last thing you want on your mind is financial worries.

Liverpool Victoria’s average claim period is 7.7 years. (LV= protection claims performance 2016 figures)

Liverpool Victoria’s average claim amount is £14695. (LV= protection claims performance 2016 figures)

Aviva’s average claim period is 3 years 16 weeks (Aviva protection claims performance 2017 figures)

Of Aviva’s claims, 29% are for clients under 40 (Aviva protection claims performance 2017 figures)

If you are working, whether employed or self employed, these plans are available. Indeed, cover even be taken by house persons in some circumstances. The level of cover available depends largely on your income – gross income for the employed and net profit for the self employed – with proof of this usually needed if you make a claim.

Typically, the plans on offer cover between 50% and 65% of these figures, but this can be up to 70% for some.

The cost of these plans is based on your age at application, so the older you get the more expensive it becomes. However, with guaranteed premiums being available in many cases, once you are paying for the plan the premium does not increase: so you have locked in the cost.

Policies that are taken out online without advice are only fully underwritten at point of claim and this can result in the risk of a claim not being paid out. It is therefore really important to discuss your financial needs with an experienced and regulated adviser. This ensures that the plan(s) recommended will provide the support you require when the worst happens.

How can we help?

Our specialists will discuss the cover that is right for you and your family at an affordable rate. We ensure that you are in a fully informed position before any application is completed with you. This gives you the peace of mind of knowing that the recommendations made by our specialists will be tailored to your specific needs and budget.

If you’re unsure what you need then contact us by phone on 0345 434 9505, or email

Enquiries.Roxburgh@sjpp.co.uk, or by clicking here

Five reasons to use us

1. We offer insurance advice with no obligation

2. We will explain the good, the bad, and the ugly

3. We will ask the right questions

4. We do all the work, right through to helping complete the application form

5. We can access a comprehensive range of insurance providers

  • Types of income protection

    Accident & sickness

    Accident and sickness protection may be the most important income protection you can have. If you are unable to work due to an injury or illness it’s there to cover your core monthly expenditures, such as paying the mortgage or rent, household bills, medical bills, credit cards, nursery costs and so on.

    Redundancy

    This is a stand-alone policy should you lose your job through involuntary redundancy. It’s important to remember that if you choose redundancy protection on its own it’s because you are worried you may lose your job; if this is the case you will also lose any protection for accident and sickness your company provided.

     

    If you’re unsure what you need then contact us by phone on 0345 434 9505, or email Enquiries.Roxburgh@sjpp.co.ukor by clicking here

  • Income protection options

    As with all things, the more options you choose the higher the price. Income protection is no different and different insurers load the options differently. It is therefore important to determine what you need and what you would like so we can find the best income protection policy available to you in the market place. Below are some of those options.

    Qualifying period

    The number of weeks from when a policy starts before you can start to claim for unemployment. This can vary from Insurer to insurer but is typically 60 days.

    Deferred period

    This is the period (in weeks or months) following a claim before the benefit you are expecting is paid to you. The longer this period is, the cheaper the premium cost of the plan. It is normally based on what your employer sick pay (if any) is, and how long you can survive financially (i.e any savings you would use).

    Payment period

    This can be one year, two years, and five years per claim; or up to your selected retirement age. The shorter the maximum period per claim the cheaper the premium becomes; however, the plan will stop paying if you are still off work after the selected period.

    Level or indexed

    ‘Level’ means that the amount you receive will remain the same throughout the time you have the insurance, regardless of whether your income or expenditure increases. Alternatively, the amount you receive can increase each year in line with inflation, using either the Retail Price Index (RPI) or the Consumer Price Index (CPI).

    Guaranteed, reviewable and age-Costed

    With guaranteed premium policies, the basic premium you pay stays the same throughout the policy term unless you increase the required income amount (or if you have indexation).

    A plan with reviewable premiums (typically ASU) is reviewed by the provider each year (like home insurance) and a new set of terms is then issued for the next 12 months. There may be no change, but the provider can change the premium, the terms and conditions of the plan, and even remove cover.

    Age-costed premiums, change each year based on your age. These changes are pre-set by the provider and are either ‘set in stone’ or can be reviewed. However, the provider cannot change the terms and conditions of the plan in any way or remove the cover.

    “Own” or “Any” occupation

    When the ‘Own Occupation’ definition of incapacity is chosen, the policy can pay out for any medical condition that prevents you from working in your own specific job role. When ‘Any’ is used, the insurer will only pay you if you are unable to perform any occupation. ‘Own’ is more expensive than ‘Any’.

    Waiver of premium

    If ‘waiver of premium’ is selected then, when you begin receiving an income from the insurance policy, the premiums paid will either be suspended while you are claiming, or be refunded back to you until the claim finishes.
    Most ASU plans do not offer a waiver of premium option, meaning you must pay for the plan whether in claim or not.

    Back-to-work benefit

    Receive a percentage of your income if, on returning to work, the illness or injury you claimed for restricts your duties and you earn less. Some insurers will also pay a top-up should you start a different occupation that pays less.

    Benefits-in-kind/P11D Benefits

    Some insurers also offer the option of protecting the value of any employment benefits such as a company car or private health insurance.

     

    If you’re unsure what you need then contact us by phone on 0345 434 9505, or email Enquiries.Roxburgh@sjpp.co.ukor by clicking here

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You may also be interested in:

  • Accident & sickness insurance
  • Redundancy insurance