Income Protection Insurance

Why Buy Income Protection Insurance Policy?

  • Self-employed: this can be vital for self-employed people who do not have access to sick pay through work. However premiums for self employed people can be higher.
  • Add-on to benefits offered by an employer: if employed, check your contract, as your company may only pay your salary for a limited period of time. Income Protection Insurance could be vital to ensure you can pay bills and meet mortgage repayments long after work benefits have ended.
  • Faster payouts: the Association of British Insurers says that typically the period when the money starts paying out is faster than Mortgage Payment Protection policies.

Income Protection Insurance: Exclusions

Those considering an income protection policy should be warned that most insurers will have a list of situations where they will not pay out. It is important to check with the insurer what is on their list. Typical situations on exclusion lists can include:

  • Criminal activity
  • Drug or alcohol misuse
  • Self inflicted injury
  • Pregnancy

See also: Mortgage Insurance, Mortgage Protection and Mortgage Cover

To start your search for a Life Insurance policy please see our Life Insurance Directory