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What Does Income Protection Insurance Cover?

Rhino Trade Insurance 07 January 2024

For hardworking tradesmen and women in the UK, the ability to earn a decent living is a point of serious pride. Whether you're a plumber, electrician, carpenter, or any other skilled professional, the continuity of your income is essential for maintaining your quality of life and providing for your loved ones. However, unexpected illnesses or injuries can disrupt your ability to work, leaving you financially vulnerable. That's where Income Protection Insurance comes into play, offering peace of mind and financial security during challenging times.

In this blog post, we'll explore what Income Protection Insurance is and dive into the specifics of what it covers, with a focus on the unique needs of tradespeople in the UK.

Understanding Income Protection Insurance

Income Protection Insurance is a financial safety net designed to provide a regular income stream when you're unable to work due to illness or injury. While there are various types of insurance available to tradespeople, Income Protection Insurance is a critical one that helps maintain your financial stability in the face of unexpected challenges.

So, what does Income Protection Insurance cover? Let's break it down.

Income Protection: What Is It?

If you are involved in an accident and get a major injury or sadly pass away due to an accident, income protection will pay out a monthly payment at your selected limit of indemnity up to a maximum of 12 months. While you are unable to work, the compensation can help with the costs and expenses of running your business and prevent general income loss from your daily work. 

Is Insurance For Income Protection Necessary? 

There are advantages to having Income Protection insurance in place, even though it is not required by law. You can rest easy knowing that if an accident strikes, you will get an instalment payment every month to help with your bills and other financial obligations. This is especially crucial for independent contractors in the trades. Because of the nature of the work you do, accidents can occur, and you will not be able to make money if you are unable to work physically.

How Many Tradespeople Does A Policy Cover?

A single person is covered by each policy. Should more coverage be needed, those tradespeople will have to get coverage on their own. Be aware that in order to qualify for coverage, you must:

  • Possess a UK residency permit, meaning that they must remain in the country for 40 weeks out of every 52 weeks following the start date.
  • Either be self-employed or employed and put in at least 16 hours a week of work.
  • Above the age of eighteen.
  • Younger than 65 years old.
  • If you buy insurance before turning 65, it will expire on its own when you turn 67.

Tell Me About The Benefits And Any Excess.

When making a purchase with Rhino Trade Insurance, you have the option to select your monthly benefit, which has a range of £500 to £2,500. If you are self-employed, your monthly benefit option cannot exceed 60% of your taxable income or 60% of your total monthly income if you are employed.

It's worth knowing that there is a 30-day introductory period during which the policy will not pay out, which is known as the "deferred period" in the policy.

How Much Will Your Policy Cost?

You can protect your income for a small fee with Rhino! To obtain a correct quote, you should use our online quote engine because various factors influence the cost of this trade insurance. These consist of:

Salary: A greater salary will likely translate into a higher level of coverage and, therefore, higher premiums.

Risk: Your insurance may be more expensive, the riskier your line of work. 

Monthly costs: A higher indemnity level will be required if your monthly expenses are significant, which will increase the monthly cost of your insurance.

Debts: You must factor these into the cover limit you select if you're repaying loans or credit card debt.

Spousal/ Partner Support: You might not require as much coverage if your partner’s income meets a portion of your regular expenses. 

Dependents: You'll probably need a bigger cover limit if you have people who rely on you financially.

Age: Like with many insurance plans, your monthly payments are probably going to increase as you get older.

Health: Since you may be more likely to file a claim, pre-existing conditions will probably also have an impact on the cost of your coverage.

Insurance for Income Protection is quite simple. With Rhino, heading to our website to get a quote will only take a matter of minutes. After deciding on the amount of coverage you want, you can obtain a price and purchase your cover before the end of your lunch break. You'll then find your policy documentation in your inbox instantly after buying. 

You have the option to pay for your Income Protection coverage on a monthly or yearly basis. It is entirely up to you, and you won't be penalised with interest fees if you choose to spread the expense with Rhino Trade Insurance.

Why Let Rhino Trade Insurance Sort Your Policy?

For tradespeople in the UK, Income Protection Insurance is a vital safeguard that can protect your income and financial security in the event of illness or injury. It provides income replacement for when times get really hard, and you can't earn an income. 

By understanding the key aspects of Income Protection Insurance and considering factors like waiting periods, policy exclusions, premium costs, and the potential for combined policies, you can make an informed decision to protect your livelihood with Rhino Trade Insurance. 

Don't wait until a health issue jeopardises your ability to work and provide for your family. Invest in Income Protection Insurance today with Rhino and get a quote by calling our friendly team in Leicester. Simply call 0116 243 7904 or visit our website now. 

About The Author Phil McCormick

Experienced in brand marketing and content. Most of that lovely communication you see online will be from Phil. social media, emails, videos, how to make a bacon sarny? You get the gist!

Trade most identified with: Electrician - It’s our Phil’s job to map out all our communications and make sure the signal works! Also, he’s one of the cockiest blighters in the team so electrician fits perfectly!

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