What is Income Protection Insurance?
Income Protection cover pays out a monthly benefit at your chosen limit of indemnity if you are signed off work due to sickness, disease, or injury. Cover also offers a payout in the event you die because of an accident. The compensation can help to protect against potential loss of income and help with other bills and expenses whilst you are signed off work.
Do I need Income Protection Insurance?
Although Income Protection Insurance is not a legal requirement, there is certainly a benefit to having this cover in place. It provides you with peace of mind that, should you be signed off work due to sickness or injury, you will receive a monthly benefit to assist with your financial commitments and expenses. This is particularly important for self-employed trades people, as you do not have the right to access Statutory Sick Pay (SSP). If you can’t work, you’ll be unable to earn, and given the nature of the work you undertake, accidents can happen.
How many individuals does it cover?
Each Policy covers one person. If cover is required for additional people, the individuals will need to purchase cover themselves separately. Note that to be eligible for cover you need to:
- Be resident in the United Kingdom (living in the UK for 40 weeks of every 52-week period after the start date);
- Employed and working for a minimum of 16 hours per week or self-employed
- Over 18 years of age;
- Under 65 years of age.
What are the benefit limits?
You can choose your monthly benefit when purchasing, which can range from £500 to £2,500 per month. Your chosen monthly benefit must not exceed 60% of your gross monthly income (if employed) or 60% of your taxable monthly income (if self-employed).
What is the excess on the policy?
There is no excess to pay in the event of a claim under Rhino’s Income Protection Insurance, but the Policy includes a ‘deferred period’ which is an initial period of 30 days where the Policy will not pay out.
What is the maximum amount that that Policy will pay out?
Rhino’s Income Protection Insurance pays out up to £2,500 per month, over benefit periods of 3, 6, or 12 months.
You can choose the maximum number of months the Policy will pay out for up to a maximum of 12 monthly payments for any one accident or sickness. The Policy also pays out a lump sum benefit of 12 times your chosen monthly benefit in the event of death.
What does the Policy exclude?
As with any insurance Policy, some things are not covered, including an accident or sickness resulting from the following:
- Any sickness diagnosed within 90 days after the policy commencement date
- Any pre-existing medical conditions unless youhave been symptom freeand not received treatment or advice forthat condition for at least the 24months before a claim normal pregnancy/childbirth related conditions
- Cosmetic surgical procedures Specified back conditions
- Stress, anxiety, depression or any emotional disorder
- Deliberate actions by you, such as criminal acts or misadventure
- War,riot, or civil commotion
- Ionising radiations or radioactive contamination from nuclear waste produced by the combustion of nuclear fuel; the radioactive, toxic, explosive or other hazardous properties of any nuclear device or component
- Earthquakes
- The taking of alcohol or drugs
We recommend that you read the full Policy Terms and Conditions before purchasing cover for the full list of exclusions.
What are the payment terms?
You can choose to pay in a single, annual payment, or via a monthly direct debit payment.
When does the Policy cover start and end?
The dates of cover are specified in your policy schedule. Each policy is offered on a 12-month basis, but we can offer to automatically renew your policy if you are paying monthly.
The policy will remain in force as long as you continue to pay your monthly premium, but it will end when you attain the age of 65 or when you retire (whichever is sooner), if you die, or if the policy is cancelled by us.
