Can you afford to not have it?

Income Protection is an Insurance that would pay you a monthly income if you were to be injured or became too sick to work.

It is a lot like sick pay although if you were unable to go back to work it would cover you up to retirement age.

Not everyone has to be in employment to get this insurance as some companies will cover housewives and the unemployed.

Depending on the cover you take out you could receive anything up to 65% of your usual monthly wage. Only 65% is paid because this is a tax free monthly payment.

The amount you pay for this insurance depends on a few things such as your age,your sex, whether you are a smoker or non-smoker, how good your health is and the type of job you do; the more dangerous the job, the more expensive the insurance would become.

If you have had a previous medical condition you don't need to worry as they will still cover you.

This Insurance is offered by many well known companies such as BUPA, Aviva( who used to be Norwich Union) and Friends Provident but a lot of the smaller companies also do Income Protection Insurance.

The income protection insurance can start been paid to you after a month of been off work, although it is cheaper if you were to get it paid to you after 3 months, 6 months or a year of been off work due to how long your employer would pay your sick pay for.

The younger you are, the cheaper your insurance will be as well. This Insurance would be very good for younger parents to protect their income and not pay a fortune, giving them a safe knowledge that if anything were to happen they would still be able to provide for the family.

Written for Cura Financial Services Ltd by Alison Rawsthorne.

Insurance Glossary

Insurance Jargon BusterInsurance Jargon Buster - A Plain English Guide

Like with most subjects, insurance comes with its own language which can include its own confusing terminology. Our Jargon buster aims to help you clarify what some of the terminology you might find on our website means so that you can fully understand the policies and covers you are considering.

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