Income Protection Insurance : Insurance Protection for your Income
Article published on 22nd October 2007
Income Protection Insurance
Income Protection Insurance also referred to as permanent health insurance (PHI). Income Protection is an insurance product that will pay out a monthly income if you cannot work due to a sickness, accident or disability that stops you working. For this reason, Income Protection Insurance is often referred to as Income Replacement or Income Insurance.
Who needs Income Protection Insurance?
If you have a job and are earning income then the chances are you have a need for Income Protection Insurance. Whilst long term illness is not something people like to think about, figures show that each year, approximately 670,000 males aged 40 to 64 are off work sick for over 6 months 1.
As a result of being off work sick, you may suffer financial hardships and be unable to pay for the general necessities in life and even to provide for your family. This is where Income Protection Insurance comes in. Income Protection Insurance will pay a tax-free monthly income to replace your own income if you can't work due to sickness or ill-health.
Do I need Income Protection Insurance because my company pay sick pay?
Whilst some employers offer sick pay schemes to employees, Income Protection Insurance is still important. You can usually tailor your Income Protection Insurance Policy to work around sick pay by choosing from deferment periods of 4, 8, 13, 26, 52, 104 months. This means that you have to be off work for that amount of time before you can claim and obviously the longer you wait, the cheaper the policy becomes. Remember that many people who are off work sick are off for long periods of time and therefore long-term cover such as Income Protection Insurance is vitally important to ensuring the security of yourself and your family.
How to buy Income Protection Insurance
To buy Income Protection Insurance you can either:
- Source the product online and apply for it directly with an insurance provider.
- Consult a qualified Income Protection Insurance Advisor for advice and quote.
Here at Top Quote Online we strongly recommend speaking to a qualified advisor before taking out Income Protection Insurance so that you ensure you are getting the cheapest and most suitable contract available. Remember you don't pay a fee for advice from Top Quote Online.
In order to get an instant quote for our Income Insurance , please visit our Income Protection Quote page, or please feel free to contact one of our friendly advisors for financial advice on Income Protection free on 0808 17 82 777.