What is income protection?
Income protection refers to a family of insurance products which ensure you can continue to meet your financial commitments if you are forced to take an extended break from work.
If you can’t work because you’ve had an accident, fallen sick, or lost your job through no fault of your own, income protection insurance pays you an agreed portion of your salary each month. You can then use the money to cover debt repayment, bills and other costs. Income protection is especially useful for people working in dangerous industries who want to be sure their mortgage will always be covered.
Income protection only covers events beyond your control: you’re much less likely to be covered if you’re fired from your job or if you injure yourself deliberately.
Types of income protection
Accident, sickness and unemployment
ASU isn’t tied to a particular debt – you receive up to 50% of your normal salary each month for a year or so.
Payment protection insurance
PPI sees your insurer make-up part or all of the repayments on your outstanding loans, normally for up to two years.
Mortgage payment protection insurance
MPPI is designed to make sure your mortgage is covered if you can’t work, usually for around 12 months
What you need to get a quote
In order for us to get the best possible quote, we’ll need to know more about you. The type of things we will ask include:
Information about your health
Insurers will need details about you and your family’s health and medical history, including pre-existing medical conditions.
Information about your lifestyle
Insurers will also ask about your lifestyle habits, including whether you smoke and drink.
Your age and occupation
The younger you are when you take out a policy, the cheaper it’s likely to be. Your occupation can also affect how much you pay.
Your partner’s details
If you want joint cover, you’ll need to have your partner’s health and lifestyle details to hand, as well as their occupation.