Income Protection Insurance

If you become ill or injured and can’t work as a result, income protection insurance can be there to support you. It will pay a proportion of your lost earnings so you can concentrate on looking after your health.

What is income protection insurance?

Income protection insurance, sometimes known as permanent health insurance, is a long-term insurance policy which is designed to help you if you can’t work because you’re ill or injured. Having income protection insurance will ensure you continue to receive a regularly income until you retire or are able to return to work.

The insurance will replace part of your income, if you can’t work because you have become ill or disabled. It will continue to pay out until you can start working again, retire, die or the end of the policy term – whichever is sooner. The insurance can protect most illnesses that leave you unable to work either in the short or long term (depending on the type of policy and its definition of incapacity).

With income protection insurance, everything depends on getting the right policy – so it’s best to get advice from a financial adviser such as Dan The Mortgage Man.

How much does income protection insurance cost?

The amount you pay each month will depend on the policy and your individual circumstances. The insurance will usually cover a wide range of illnesses and situations, and has the potential to pay out for many years.

The cost of a policy will vary, based on a number of factors including age, job, whether you smoke, the percentage of income you would like to cover, health and your family’s medical history.

What are the different types of income protection?

There are typically two different types of income protection; short term and long term. Short-term income protection policies are known as Accident and Sickness insurance (and can also cover for Unemployment) (ASU) products which tend to pay out for one or two years. Long-term income protection will typically provide a regular income if you are unable to work due to illness or disability, until you are well enough to return to work, or until the end of the policy term.

Short term income protection

Short term income protection will often meet the cost of a specific debt, preventing you from defaulting. They do not have to cover a specific debt, they can simply be used to fund your lifestyle in the event that you lose your income but are generally used as mortgage insurance cover.

Long term income protection

Long term income protection will usually provide a regular income if you are unable to work due to illness or disability until you are well enough to return to work, or until the end of the policy term. It will generally not cover you if you are made unemployed or redundant.

How Dan The Mortgage Man can help

My extensive knowledge of the insurance market enables me to provide a dedicated service to meet clients’ personal needs. I will scour the market for policies and deals, and discuss with you the options available to you. We’re here to help and guide you through the process, without the hassle of you having to shop around yourself.

Get in touch with us today

Our extensive knowledge and experience in the industry will allow us to find you the best possible form of income protection to suit your criteria. To find out more, please call us on 07837 820 894 or email Info@DanTheMortgageMan.co.uk.

We have access to a wide range of lenders

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