Income Protection -
Quick FAQ's
How do income protection plans work?
How much cover can an income protection plan provide?
How long will the cover provided by an income protection plan last?
How long will I have to wait before my income protection plan starts to pay out?
How much will an income protection plan cost?
Calculate how much income protection insurance you need
Am you paying too much for your existing income protection plans?
How do income protection plans work?
Income protection plans have traditioanlly been known as Permanent Health Insurance policys(PHI).Over the last few years there has been a greater tendancy for life assurance companies and advisers to refer to them just as income protection plans.
The principal idea of Permanent Health Insurance (PHI) is to provide a replacement tax free income if the person covered by the plan should find themselves unable to work because of an accident or illness. The benefit levels of income protection plans are chosen with a view to maintaining your current standard of living and making repayments on outstanding loans or debts, including your mortgage.
How much cover can an income protection plan provide?
The amount of benefit you can be covered for by an income protection plan is normally determined by your salary or self employed earnings. Normally up to 65% of your current earnings can be replaced by an income protection policy, although any income from State benefits, pensions or other sources will often be taken in to account when benefit levels are calculated.
Cover can also be obtained if you are not working, and the amount available will vary from company to company.
How long will the cover provided by an income protection plan last?
Most people set up their income protection policy to run until any age from 50 to 65. The cover is permanent, which means no matter how many times you claim on your income protection plan the cover will never be cancelled.
How long will I have to wait before before my income protection plan starts to pay out?
When you take out an income protection policy you choose the length of time you will wait between becoming ill and benefits starting to pay, with a minimum normally of 1 month. This can be extended to 3 months, 6 months or 1 year. This is known as the 'deferred period'.
How much will it cost?
Premiums on income protection plans vary depending on age, sex, occupation, tobacco consumption and amount of benefit required. The term and deferred period of the income protection plan will also cause variations in premiums.
Because of the special discounts we provide for our online clients, it's cheaper to get your income protection insurance through Money Minder than going direct to the provider. See our comparison table to find out how much difference this can make and then get a free online income protection insurance quote.
Calculate how much income protection insurance you need
If you would like some help to establish how much income protection insurance you might need, you can visit the main site to use the life insurance finance navigator or if you would prefer to speak to an independent financial adviser you should contact us.
Are you paying to much for your existing life insurance plans?
Over the past few years, life insurance premiums have reduced significantly.
If you have any existing income protection plans, life insurance, mortgage protection, or critical illness plans in force, use our FREE quote service, to establish if you can save money on your current policies. After all, why pay more than you need to!
