Mortgage and Insurance Advisers


Income Protection

Can I Get Income Protection?

Income protection can be used if you are employed, self-employed, a contractor, or an LTD company director.

Unlike basic accident and sickness policies, income protection plans can typically cover any medical condition as long as your GP signs you off for work.
Important questions we ask our clients are:

  1. “If you stopped working right now for 1 month, 2 months, maybe 6 months, financially how would you cope?
  2. Does your employer have comprehensive sick pay so that would not be an issue? Would things start to get tight immediately?
  3. Or how much money would you need on a monthly basis while you were off work so that you could focus on getting better, instead of how you will cope financially?”From here we identify what is most suitable for you.

Income protection plans can cover a maximum of 80% of your self-employed net profits or 70% of your gross annual salary if you are employed. Each provider has a different stance on how much is allowed, so it’s important you discuss your needs with your independent income protection insurance adviser.

Short Term Income Protection vs Long Term Income Protection

Income protection plans pay out a monthly amount of money in the event of being signed off work for medical reasons. Short term income protection will pay out generally up to 12-24 months, to give breathing space in the event of a short term situation and designed to fit for those with a smaller budget whereas long term income protection plans (Permanent Health Insurance) will payout until the end of the term in the event of being signed off work. There are also family income protection policies that protect you and your loved ones, should you become unable to work.

Arrange to speak to our Personal Protection team here to see what is most suitable.

Accident Sickness (PPI) vs Income Protection

Accident sickness cover is also known as payment protection insurance and is a non-medically underwritten policy at the point of the claim that was usually recommended to be taken out alongside a mortgage.  Non-medically underwritten means you can take out a policy instantly with relatively few medical questions, however when you claim the provider will investigate your medical history. Accident and sickness policies do not have to publish their claims statistics and have a generally higher threshold in order for the claim to be valid.

Income protection insurance policies are fully underwritten before the policy starts to see whether or not any conditions may need to be excluded.  Income protection insurance takes into account your age, employment status, medical history as well as occupational duties. They also cover your own occupational duties, so if you’re an HGV driver and have time off work due to sciatica, they won’t ask if you can work from home and answer the phone instead.  The provider will ask for confirmation that your GP or medical consultant has signed you off for the time required. Depending on the provider and your employment status, providers cover up to a maximum of 60-80% of your wages.