What is income protection?
This type of cover provides financial security for you and your family against a loss of earnings as a result of any illness, injury, disability, or accident that prevents you from working beyond your chosen deferred period. The plan offers a weekly income after an initial period of either 13, 26, or 52 weeks (selected by you) and will continue as long as you are out of work, up until age 65 (or retirement if sooner). You can also receive tax relief on all premiums paid, up to 10% of your total salary, at your marginal tax rate.
When does it pay out?
Depending on your chosen deferred period, the plan will then commence paying you a weekly/monthly income as a result of any illness, injury, disability or accident.
What are the benefits of having income protection?
- pays out for any illness/injury
- Tax relief on premiums
- Income replacement to cover bills, mortgage, medical or childcare expenses while out of work
What’s the difference between Income Protection and SIC?
- Income Protection pays you a salary for any illness/injury preventing you from working
- Specified Illness cover will pay you a lump sum payment if you are diagnosed with a life-threatening illness that is covered and defined under the policy conditions, examples would include some cancers, heart attack, or stroke.
