All Income Protection
AIG Life Income Protection Insurance
AIG covers occupation classes 1, 2, and 3 and housepersons: Own or suited occupation definitions for full-time workers; their suited occupation definition includes 12 months own occupation cover; Maximum benefit of £12,500 per month (or 60% of first £25,000 of pre-tax annual income plus 50% of any pre-tax annual income exceeding £25,000, divided by 12); and five deferred periods available. The deferred period is waived on diagnosis with a terminal illness.
Aviva Income Protection Insurance
To help you, Aviva will include additional benefits in your Income Protections Options policy at no extra charge. A hospital benefit of up to £75 per night if, due to the illness or injury you're claiming for, you need to spend time in hospital for more than 7 consecutive nights during the deferred period. They'll pay this for a maximum of 90 nights. A back to work benefit. They may still pay you a percentage of your benefit if, on returning to work, the illness or injury you claimed for restricts your duties and you earn less.
Legal & General Income Protection Insurance
Hospitalisation Benefit: A payment of 1/30th of the benefit will be made for each additional night the client spends in hospital after staying there for 7 consecutive nights. Continuous Cover: Cover will continue if your client goes on maternity/paternity/adoption leave, becomes unemployed or goes on a career break. Linked claims: If, on returning to work, the client becomes incapacitated within 12 months from the same or related cause, payment of the monthly benefit will resume immediately. Life cover: If the insured person dies during the length of the plan, Legal & General will pay out an amount equal to their annual premium, or 12 times the monthly premium. Income Guarantee: If the client needs to make a claim, and their salary is lower than it was when they bought the product, the monthly benefit they pay will be based on the lower of £1,500 per month or the monthly benefit on their plan.
LV= Income Protection Insurance
LV= pay out if you can't do your job because of an accident or sickness for as long as you need it or until the policy ends. Pays a regular income to help replace some of your lost earnings. Fracture cover at no extra cost (lump sum payment up to £2,200, depending on the type of fracture). Contractual death benefit (fixed lump sum payment up to £10,000). Payment of premium during involuntary unemployment for up to 6 months. You can spend the money on essentials or luxuries. Simple and easy claims process. Prices start from £5 a month. Back to work support available. Career break option available. Guaranteed or reviewable premiums. Level or inflation-linked cover. Special features for doctors and surgeons. Sick pay guarantee (for certain occupations). Cheaper budget cover also available.
Do I need income protection insurance?
Income Insurance is a way to protect you if you end up in a situation where you cannot continue to work due to redundancy, an accident, sickness, or unemployment. It works by paying you a regular sum of money after you place a claim, for a set period of time.
Income protection insurance can provide you and your family with an extra layer of security if you find yourself in times of trouble with no savings or other sources of income to fall back on. It provides you with a guaranteed source of income for a few months.
Although this temporary pay may not completely tide you over until you find another job or recover from illness or an accident, it could be a valuable way to keep your head above water.
If you’re self-employed, having income protection cover is particularly valuable because you can’t claim statutory sick pay or take advantage of any employee-related insurance schemes. A regular payout from your salary insurance policy will help cover the cost of living if you fall into a period of being unable to work.
Having income protection insurance gives yourself and your family peace of mind that – for a few months at least - you'll always have enough money to live on should you be unable to work.
FAQs about income protection insurance
What is income protection insurance?
Income protection insurance provides cover if you are unable to work due to an accident, sickness, or unemployment.
How much does income protection insurance cost?
The cost will depend on the type of cover you require and the provider you choose. The amount of income you want to protect and the length of policy will affect your premiums. Your occupation, age and any existing health conditions will also need to be taken into account. Based on this information, some providers may see you as a greater risk and charge a higher premium.
What does income protection cover?
You can choose from three main policies: accident and sickness only, unemployment only or accident, sickness and unemployment cover.
How do I claim on my income protection insurance?
To claim on your income protection insurance, you should call your provider and give them your personal details, policy number and reason for claiming. You will need to send evidence of why you are off work, such as a medical report, and proof of income. Your insurer will see if your claim is covered by your policy and may ask for further information, before paying out.
How long does income protection insurance cover for?
The length of cover will depend on the type of policy you’ve selected. Payouts will either continue until you return to work or until the policy expires.
Can I get income protection if I'm self-employed?
Yes, income protection insurance is particularly valuable to those who are self-employed because they miss out on statutory sick pay or any employee-related insurance schemes.
Can I take out a joint income protection policy?
No, you can’t take out a joint income protection policy, though you should consider the entire household income and requirements when arranging cover.
Can I take out more than one income protection policy?
Depending on the terms and conditions, it is possible to arrange more than one income protection policy. Be aware that contribution clauses mean you're unlikely to be able to claim more than 70% of your income, even if you have multiple policies.