What is Income Protection Insurance?

Income Protection Insurance serves to be your financial aid if ever you lost your job due to redundancy, sickness, or accidents. If your income is insured, you can receive regular monthly payments that should help you pay the bills and other expenses while no paycheck is coming in.

I already have a health insurance. Why would I need it?

Health insurance can help cover your medical expenses, however, this alone may be insufficient and cannot replace your income. Having IPI to go hand in hand with your health insurance can further provide financial security in times of crisis.

How much can I claim?

Depending on the policy, you may be eligible to claim up to 50% of your gross monthly earnings or £2,000, whichever is the lower.

What is Underwriting?

The underwriting process involves assessment of your occupation, age, health condition, lifestyle, and other factors that could determine if you are eligible for cover. During this process, the underwriter will decide how much premium you will have to pay and if there are any policy exclusions needed to apply because of high risk.

Can I have my partner covered?

If your partner is a stay- at- home spouse, you may opt for an additional Homemaker Insurance on your policy. You can’t cover an employed partner, but he/she can apply for a separate IPI policy.

How long will the waiting period be?

There is a waiting period before you can start receiving payments, which can be from 30 to 90 days depending on your choice. You will receive monthly benefits at the end of this waiting period. Typically, the longer your waiting period is, the lower the premiums you have to pay. If you have sick leave at work, it would be wise to choose a waiting period that would soon begin after you maxed out your sick leave. It would also be smart to have adequate savings that would last a few months to help you get by while the disability benefits are yet to begin.

Where can I spend the money?

The best part of receiving IPI benefits is that you can choose to spend the money in any way you want. Whether you like to pay for your loans, mortgage, rent, or even buy something that you really want, it is up to you. However, it is your responsibility to make sure that your basic expenses and financial obligations are taken care of.

How long can I receive benefits?

You can receive benefits for six months, one year, two years, or up to five years, depending on the coverage you choose.

What is Non- Disclosure?

 Non- disclosure is when you failed to mention something about yourself which could increase the risk of the insurance company, either accidentally or deliberately, such as an existing medical condition or a dangerous hobby. This could void your policy and you might not be able to make a claim.

What if I change my occupation?

 It would be fine with most companies should you change jobs, however, you might need to note salary changes in order to increase or decrease your cover.

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We do not provide any financial advice relating to insurance or other insurance related topics. IncomeProtectionAdvisor help users get a competitive income protection insurance quote. We do this by working with FSA regulated partners who search and compare insurance policies from dozens of UK insurers. The quote you receive will be based on the information you submit to us. Our service is free and you are under no obligation to accept the quote you receive.