What is Income Protection Insurance?

Income Protection cover pays out a monthly benefit at your chosen limit of indemnity if you suffer from a serious injury or death as a result of an accident. The compensation can help protect against loss of income and help with other bills and expenses whilst you are unable to 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 injured in an accident you will receive a monthly benefit to assist with your financial commitments and expenses. This is particularly important for self-employed trades people. If you can’t physically work, then you will be unable to earn money 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.

If you purchase cover before the age of 65 it will automatically end when you attain the age of 67.

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?

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?

You can choose the maximum number of months the Policy will pay out for (after any deferred period has finished) 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 the 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 (including diagnosed COVID 19 cases) unless you have been symptom free and not received treatment or advice for that condition for at least 24 months preceding a claim or where you had COVID 19 symptoms but did not receive hospital treatment as an inpatient or outpatient.
• Chronic conditions
• Elective surgical procedures
• Specified back conditions
• Stress, anxiety, depression or any emotional disorder
• 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 full for 12 months or on a rolling monthly payment basis.

When does the Policy cover start and end?

The dates of cover are specified in your policy schedule. 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 67 or when you retire (whichever is sooner), if you die or if cancelled by us.