Providing For Loss Of Income
Income protection cover pays a tax-free monthly benefit when you have been deemed unable to work by a doctor. As individuals are far more likely to be unable to work due to illness than to die, income protection is generally considered to be more important than life cover.
There are various options within income protection policies to ensure policies are flexible in meeting your specific needs:
The maximum monthly benefit is generally limited to between 50 and 75% of your total annual earnings dependent on the type of income protection policy. For self-employed individuals or company directors, this can also include dividends.
The benefit deferral period can be set to reflect that individuals will often receive sick pay from their employer for a short period of time but no further income thereafter.
The monthly benefit can be index-linked to inflation both before and during claim. This ensures that the value of the benefit is maintained in real terms.
Waiver of premium benefit should always be added to an income protection policy. This ensures that your insurance premiums are waived in the event that you are claiming under the policy.
The term of the policy can be set in line with your anticipated working life or in line with the term of a significant monthly expense, such as a mortgage.
If you are unsure what type of income protection cover is best for you or would like to know more about the range of insurance policies we can arrange for you please email firstname.lastname@example.org or call 020 7633 2222
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