Income Protection Insurance ComparisonOur income protection insurance pays out an income if you're unable to work because of illness or injury. It will pay a regular monthly income, tax- free. The maximum amount of income you can replace through income protection insurance is generally limited to the after-tax earnings you have lost, less a small adjustment for state benefits you can claim. This is usually translates to around 50% to 60% of your pre-tax earnings. The monthly payment continues until you go back to work or you reach retirement age. Income protection insurance is essential for the self-employed who would have insufficient income to live on if unable to work because of an accident or ill health. For those who are employed, you should consider what, if any benefits your employer would provide by way of sick pay or retirement benefits if you were too sick to carry on at work.
Income protection pays out if you have an accident or become sick and as a result you’re unable to work. But how "unable to work" you are, does in fact vary between policies and can be any of the following: - Unable to do your own job
- Unable to do your own or a similar job for which you are qualified
- Unable to do any type of work
Policies which pay if you are unable to do your own job are clearly better than those which only pay out only if you are unable to do any sort of work. The basis of the payout is significant when it comes to the cost of cover with those policies requiring you to be unable to do any paid work being cheaper than those policies which simply require you to be unable to undertake the tasks of your own occupation. Income protection policies won’t pay out while you continue to receive your salary. Policies also have a "deferred period" which is a period of time you must be unable to do your job, before income is paid out. This can be anything from of 4 to 52 weeks. The longer the deferred period the cheaper the policy. Income protection policies do not cover you if you are unable to work as a result of: - Self-inflicted injury
- Alcohol or drug abuse
- Pregnancy or childbirth
- Pre existing health problems you had before the policy was taken out
- Injury as a result in the participation of dangerous sports or other activities which you failed to disclose when applying for the policy
The cost of income protection The cost of income protection depends on your age, sex, state of health and your type of job. Men often have cheaper premiums than women and those in jobs where there is high risk of physical injury often pay more. You will need to decide: - How much you need the policy to pay in the event of sickness or injury;
- The length of the cover and how long it should last
- How long you can wait before payments under the policy are made
- To increase the cover automatically each year, to keep up with inflation
Your Capital Fortune adviser will be able to consider policies on the market and will be able to advise you on the most suitable and affordable cover to meet your needs. If you need any assistance why not speak to one of our Mortgage Advisers by calling 0845 3 630 430 or Enquire Online. | 
