Commonly Asked Income Protection Insurance Questions

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Why is Income Protection important?

If you suddenly become unemployed or unable to work due to sickness or accidents, Income Protection Insurance can provide you with financial assistance during this difficult time. With IPI, you can claim benefits if your income suddenly stopped, and this can help you sustain your living expenses and pay the bills.

What if I can claim state benefits?

While you may be eligible for a state support, the amount you can claim might be too little to maintain your standard of living. However, if you have an Income Protection Insurance, you’€™ll have an extra source of income to help you live comfortably.

How much is the maximum insured benefit?

Your monthly benefits will be determined by your income. Most companies will usually allow up to £2,000 or 50% of your gross monthly salary, whichever is the lower.

How long will my benefits last?

You will receive benefits for as long as you are unable to work and until you reach the predetermined end of your term, which can be anywhere from six months up to five years or so, depending on the term you choose. Your IPI benefits will cease once you are able to work again or have reached retirement age, wherein you are eligible to claim other benefits.

What if I change jobs?

Most insurers wouldn’€™t mind if you changed jobs, but you might need to report salary changes for you to increase or decrease your cover.

Are there any exclusions?

Like other types of insurances, there are certain restrictions with IPI for which you can be denied coverage. For example, if you have a pre- existing medical condition or are pregnant, you might not be approved easily. Furthermore, IPI do not cover claims resulting from alcohol or substance abuse and self- inflicted injuries. Some policies may also exclude cover for certain high risk jobs and activities. It is best to check what conditions the policy will not pay for and determine if you need to pay higher premiums to lift these limits.

Can the insurer cancel my policy?

You only have the power to cancel your policy, however, your policy may stop if you failed to make payments or if it is proven that you have committed fraud during the underwriting process.

Can I get a refund at the end of my coverage if I hadn’€™t made a claim?

Unfortunately, if you haven’€™t made a claim before your policy ends, the policy will simply terminate and you won’€™t get your money back. Similar to other insurances, this is a risk that you should be willing to take in order to protect yourself from the unknown.

How Many Times can I make a claim?

You can make a claim as often as you need as long as you are still within the contract term.

What are the costs?

There’€™s no definite cost for an Income Protection Insurance, as the premiums will be calculated based on your current income, occupation, age, health status, and if you are a smoker or have an existing medical condition.

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