These policies can help to provide an income of between 50% – 65% of your income due to incapacity caused by illness or injury. Cover is designed for those that want to protect against a loss of income whilst the plan is in force and will provide regular payments to replace part of your income. It also offers a range of support services to help you get back to work.
Importantly, Income Protection Benefit can be claimed as many times as you need to while the policy lasts, but there is often a pre-agreed period before the payments start. The longer you wait, the lower the premium. It is not the same as Critical Illness Cover (CIC) which pays out a lump sum on a defined serious illness. The average age of Income Protection claimant is 41 years old.
Tailored Income Protection Plans
Every client is different. Income, family, expenditure, it all differs from person to person.
We are able to tailor your plan specifically to suit your needs and your budget. There are 2 different types of Income Protection Policy- Income Protection Benefit & Low-Start Income Protection and you are able to add extra features to both.
Income Protection Benefit will pay a monthly benefit after a chosen deferred period and you can define when the payment is made, how long it is paid for and how much you want it to pay out. There is a low-cost option which helps to reduce the cost of the plan if you are on a budget and will pay out your defined monthly benefit but only for 12 or 24 months, rather than up until retirement.
Within one plan you are able to provide two different deferred period and two different monthly benefits. This isn’t available with the low cost option, but is suited to those clients that have sick pay schemes built in with their employer.
Increasing Income Protection Benefit
This flexible product helps protect the monthly benefit against the wrath of inflation, so this is another option which we think could be really popular in 2022.
Low Start Income Protection
Low-Start IP shares many of the same features as our Income Protection Benefit, but the starting premium starts lower and increases each year with age. You can still flex your product using Increasing Income Protection, stepped benefits and a lower cost option.