Income protection insurance pays out if you can’t do your job due to an accident or sickness. Most providers will class not being able to work as not being able of do your specific job, rather than any job.
It will usually pay around 60% of your current income, so it ensures you have some income that will help pay your mortgage and other living costs should you not be able to work for a period of time.
It can carry on paying until you go back to work or retire, or it can pay for shorter periods, such as up to two years or five years. If you went back to work prior to this time, it will stop paying. Generally, a shorter payment period will result in the policy being cheaper. Multiple claims within the insured period are allowed, subject to certain criteria being met.
Finally, there is a waiting period before the policy pays, called the deferred period. The longer this is, the cheaper the policy will be.
Your policy is covered by you making monthly payments. The payment amount is determined by your job, age, smoking status, overall health, how long the insurance is for and the amount being insured.
It is typically taken out to help pay for the mortgage and basic living costs when you can’t work due to an accident or sickness, so you can concentrate on getting better and focus on getting back to work.
At RNR Mortgages, we aim to make arranging your income protection insurance, like your mortgage, stress-free, anxiety-free and hassle free.
Do I need income protection insurance?
Whether you are living on your own, have dependents or family living in a home which has a mortgage, we recommend having some sort of income protection insurance. Statistics from insurance providers prove that you are more likely to claim on this policy, than serious illness insurance or life insurance.
To further help identify whether you need income protection insurance, try asking yourself the following two questions:
If you could not work due to accident or sickness and your sick pay at work stopped, can you and your family survive on £96.35 per week, which is the statutory sick pay amount?
Is it important for you to remain in control of keeping your home, regardless of any circumstances?
We are proud to offer income protection insurance advice and support to those in Leicester and beyond. We will help you ascertain how much cover you need and take into account your current health situation. Once we have done this, we will be in a strong position to find the perfect provider to meet your requirements.
Contact Us Today
If you are looking into income protection insurance options, get in touch with our specialist team who are on hand to answer any questions, provide support and guide you on taking out the right policy to meet your needs.
