06/08/2017
Income Protection Insurance, Income Protection Employed
0116 366 6866
Introducers
An Explanation on Income Protection - By Halo Consulting
Income Protection – paying your bills should you fall ill Income Protection is all about security. Consider yourself a money-making machine. Each month, year after year, you bring home a salary which pays your bills and allows you and your family to enjoy the lifestyle you lead. But what happens if you fall ill? Suddenly, without notice, the money-making machine is broken. If you’re not insured, then who will pay your bills? Should you fall ill, you need to know how you will pay your day-to-day living costs. If anyone asked you whether you would prefer to pay a small amount each month to protect you and your family from a lack of income, what would you say? Income Protection is a type of policy which helps to replace your income should you fall ill and you nd yourself unable to work. At Halo Consulting, we will advise you on various options, so you can choose a suitable level of https://halo-consult.co.uk/personal-insurance/income-protection/
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income protection for you and your family. We won’t ba e you with premiums or policies, we care. We’re fully focused on protecting your income so you can pay the bills if you are unable to work. How does Income Protection work? You nd yourself unable to work due to an illness
You could receive a xed monthly amount after a ‘deferred’ waiting period – this can be anything from 1 day to 1 year. The longer the ‘deferred period’ you choose, the cheaper your policy will be. You’re not sure how much money you could receive
You would be insured for a maximum level of bene t, usually based on a percentage of your salary. This cost will depend on many factors including your age, occupation and the level of bene t you need. You are receiving other bene ts for your sickness
If you are receiving any state bene ts, this could be taken into account – we will advise. You choose how long you wish to protect your income for – this could be anything from 2 years right up to your retirement. It’s up to you. There are other providers of Payment Protection Insurance [Short-Term Income Protection] and other products designed to protect you against loss of income. For impartial information about insurance, please visit the website at www.moneyadviceservice.org.uk To nd out more about Income Protection, please call us on 0116 366 6866 or email: info@halo-consult.co.uk
How does Income Protection work?
If you cannot work due to sickness or illness over a long term basis, this type of policy will protect your earnings. Although, short term Income Protection is available, usually Income Protection pays out until you return to work, or until retirement or death.
Why would I need Income Protection?
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If you cannot work due to illness, this type of policy will ensure you still have a monthly income so you can pay your bills, mortgage, and any other nancial commitments. Whether you are employed or selfemployed, Income Protection is an important bene t.
How much of my income would be covered? This can vary depending on the insurer – usually, 70% of your gross salary would be protected. It is designed to lessen any nancial di culties you may face by providing a replacement income.
What’s the process if I want to make a claim?
In the rst instance, you would need to contact your insurer to make a claim. They will guide you through their process so you can authorise the claim.
Would an Income Protection policy cover redundancy? There are speci c short term policies that can cover you for redundancy – however, standard Income Protection insurance would not cover you for redundancy. Please speak to one of our advisers who will be able to advise you on a suitable policy.
What’s the di erence between Income Protection and PPI?
Although it is a form of Income Protection, PPI provides cover for credit cards and loans etc. A standard Income Protection policy o ers support by providing you with a percentage of your salary. It is designed to make sure you do not experience nancial hardship as a result of not being able to work, and can be used to cover your household bills and expenses unrestricted.
What is the cost of Income Protection? This depends on the policy options you choose including the amount of bene t, the deferred period, and how long you would like the https://halo-consult.co.uk/personal-insurance/income-protection/
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policy to be paid for.
What percentage of my salary will Income Protection pay out?
Depending on the insurer, this is usually 70% of your gross salary, which can be paid for a speci c period, e.g. 1, 2 or 5 years. Plus, Income Protection could pay you up to the standard retirement age.
What does the term ‘deferred period’ mean?
The length of time you must be absent from work due to illness before the bene t is paid by the insurer is called a ‘deferred period’. The longer the deferred period is, the cheaper the premium will be.
Are there any other types of Income Protection available?
In the UK, there are various types of Income Protection, which include sickness, accident, and unemployment policies. Short term policies usually pay out over a shorter duration e.g. over 6 – 12 months. Long term policies usually pay out until you return to work, retire or die.
What are the minimum and maximum levels of bene t available?
The minimum amount to consider should include cover for your general living costs, household bills, mortgage or rent, and any loans, etc. The maximum amount of bene t is usually xed by the insurer.
I am self-employed – can I be covered for Income Protection?
Yes, if you are a sole-trader you can be covered for up to 70% of your pro t before tax is applied.
Would I be able to take out Joint Income Protection?
No, you would need to take out an individual policy as Income Protection is designed to cover your own income – it is not available https://halo-consult.co.uk/personal-insurance/income-protection/
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as a joint policy.
What’s the di erence between Critical Illness cover and Income Protection?
If you are diagnosed with a Critical Illness, this type of cover will pay out a lump sum, whether or not you are able to return to work. As a comparison, should you be unable to work due to illness, Income Protection helps to cover you for the resulting loss of income.
What does the term ‘occupation classes’ mean?
This is how an insurer assesses the type of risk your job poses to your health. Higher occupation classes usually result in higher premiums, and lower risk occupations will have lower premiums – Class 1 occupations are low risk whereas Class 4 is classed as a high risk occupation, e.g. a reman etc.
After I have made a claim, what happens if I return to work?
The bene t will stop – however, many companies will allow you to claim a proportion of your bene t to make up the income you have lost, if you return to work at a lower rate of pay.
I am planning a career break – how does this a ect Income Protection?
Cover and premiums can be suspended and resumed on your return to work for a pre-agreed amount of time. Most insurers now o er “non-working” or “career break” options; in this instance, they would not require further evidence of why you have stopped working.
Is there a limit for the number of times I can claim?
No – however, if you opt for a limited bene t period of e.g. 5 years, the bene t will be stopped once you reach this limit. There is no limit to the number of times you can claim but, in some cases, the deferred period may be waived. This is usually when you have https://halo-consult.co.uk/personal-insurance/income-protection/
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returned to work after a claim and then, within a short period of time, su er a recurrence.
What happens to my Income Protection if I decide to change my job?
You may need to inform your insurer – this can vary depending on the provider. However, it is always a good idea to review your level of cover if your salary changes.
How does the term “own occupation” de ne incapacity?
Should costs allow, this is the preferred de nition applicable for most occupations for practical and medical reasons. The policy will pay out if you cannot perform the duties of your “own” job. The term “Any occupation” will only lead to a bene t being paid if you cannot undertake any job for which you are considered suitable.
Disclaimer This information does not constitute nancial or any other form of professional advice. Should you require advice, please contact us directly on 0116 366 6866. It is important to ensure any insurance policy you take out is suitable for your needs.
Request a callback We need about 10 minutes of your time to really understand what you are looking for and then we can personalise our recommendations. There’s no obligation and it’s completely free.
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Skye Da Silva
Tracey Kitchen has always provided an outstanding service! She is highly professional and has always kept me updated in regards to my plan. Tracey is always there for any questions I may have and has always managed to get back to me in a timely manner. There is a personal element to her service which for me goes a long way.. I couldn't recommend her enough! Thank you Tracey. Posted 1 week ago
Fayzeh
I spoke to Tracey, she was very attentive to my needs and explained all the options very clearly. She always came back promptly whether via telephone call or email. Great cusromer service! Posted 1 week ago
Vik
Tracey was very efficient and knowledgeable. Posted 1 week ago
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Lynne
Income Protection Insurance, Income Protection Employed
A wonderful company to deal with. Tracey is so helpful and knowledgeable. Nothing is too much trouble and you feel that if you have any queries, issues, etc. she will go out of her way to try solve them. Halo Consulting deal with my Medical Aid, which is important in making me feel secure and confident in the knowledge that they are
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