Income Protection Insurance is designed to protect you from this uncertainty by providing you with a regular monthly income until you are able to return to work or for a preselected amount of time.
The amount of income you are allowed to claim will not replace the exact amount of money you were earning before you had to stop work. The amount of cover is based on a percentage of your gross earnings (in most cases 50 – 70%) and also the income you get from the policy is tax free.
There is no limit on the number of claims you can make and if you are unable to work again, this benefit can be paid until you retirement age.
There are many providers that offer income protection policies on the market, at Allstarutilities we will make sure you will have help choosing the most suitable insurance policy for you.
You should always check the terms and conditions of any insurance policy very carefully before you sign up to make sure it meets all your needs. You will need to be sure of exactly what you can claim for, when you can claim and how much you’re likely to get.
There are rules which say the policy documents must be written in easy-to-read plain English, so you can understand what you’re signing up to.
Of course all aspects of your desired policy will be explained in your initial appointment however we always recommend to double check everything to avoid disappointments.
In order to make a smart decision regarding the type of policy and provider that’s best for you, you must first understand what a income protection insurance policy is and what you need it for.
It is here that our team of professionals can be of help.
Please use our contact form for more advice and information.
An average appointment lasts between 60 to 90 minutes and you only have to do this once.
Getting the right advice makes things a lot easier, a qualified advisor will help you to choose the protection for you & your loved ones.
There are various types of polices to choose from however the younger you ll do it, the cheaper it will be.
Many people take out Income Protection thinking they may need to claim in the event of a car accident, stroke, cancer or heart attack.
Max, a 46 year old father of 3, worked as a nurse on a busy hospital ward. He was working long hours, constantly surrounded by people from all walks of life with different health conditions and situations.
At home, he was busy with his young family; his elderly mother lived nearby with mobility issues and relied on his support. The long shifts in combination with his home life, affected his ability to carry out his very demanding job.
“When I took the policy out, I thought I might need it for a physical condition. I never imagined that I would be signed off work for mental health.”
Max was signed off work for stress and anxiety for around 6 months. He benefited from additional counselling sessions which were provided from the insurer to support his transition back into work.
Mental health awareness is all around us. In our lives, we are so busy that we never stop to think that we are suffering and just put it down to a busy life. Luckily, in this case, this was identified and supported from an early stage and Max is now able to manage his day to day living.
An Income Protection plan can support you through a mental health episode which can occur at any time in your lifetime.
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Premium rates are typically based on factors such as age, gender, height, weight, health status (including whether or not you use tobacco), and if you participate in high-risk activities or occupations in addition to the above income protection policies also change their price depending on the deferred period and amount of payable insurance you will choose.
It might be worth considering a new policy if you have any significant changes in your life circumstances, such as if you:
Most policies have a 31-day grace period wherein you can pay the premium with no penalty or interest. If you have a term policy and do not make the payment within this grace period, the insurance company will usually terminate the policy.
In most case scenarios the answer is yes, depending on a selected provider your health condition may be removed from the policy and your monthly premium could go up however you would still be insured for any other conditions that could prevent you from working.
The underwriting process is a method through which carriers assess your risk based on the medical questionnaire answers on the application, and databases search results to conclude whether or not to approve, deny, or rate up a life insurance policy.