How would you be able to pay your bills if you were unable to work?

Downton Mortgages and Financial Services explain why it’s wise to take out Income Protection insurance

Being unable to work for medical reasons would be a seriously stressful and financial burden for the majority of us. Protecting payments on your property, paying monthly utility bills and providing for your family would all be a challenge if an illness or injury meant you couldn’t work for the foreseeable.

Why would I need income protection insurance?

Income protection insurance gives you that all important peace of mind; you can be reassured by knowing that any loss of earnings would no longer have a detrimental impact on your day to day living as you would receive a regular monthly amount. Previously known as permanent health insurance, income protection is an insurance policy that simply pays out if you’re unable to work because of injury or illness. It is always good to remind ourselves that only a minority of employers support their staff for more than a year if they’re off sick from work. The low level of state benefits and statutory sick pay mean that more and more people of working age are seeing the value in taking out income protection.

Make sure you get the right protection!

It’s wise to make sure you don’t muddle up income protection insurance and critical illness insurance, as they are very difference types of insurance. Critical illness will only pay out a lump sum if you fall seriously ill – it won’t support you whilst you are unable to work.

How long will the insurance pay out for?

Income protection insurance will usually pay out until retirement, death or your return to work. There are some short-term income protection policies, which will cover you for 1-2 years, but neither income protection nor short-term income protection will pay out if you’re made redundant.

How much will income protection insurance cost me?

As with most types of insurances, the amount you pay for your policy will very much depend on your current state of health, whether you smoke or drink alcohol and the level of cover you need. Your job type will also have an impact and these fall into four categories of risk:

Class 1: Professional; managers; administrative staff; staff with limited business mileage; admin clerk; computer programmer; secretary.

Class 2: Some workers with high business mileage; skilled manual work; engineer; florist; shop assistant.

Class 3: Skilled manual workers and some semi-skilled workers; care worker; plumber; teacher

Class 4: Heavy manual workers and some unskilled workers; bar person; construction worker; mechanic.

The riskier your job, the more likely it is that you may need to make a claim and although the riskier occupations tend to require higher premiums, the more likely you are to need a policy!

Get no obligation advice today!

If you think that you and your loved ones could benefit from income protection insurance, our friendly team at Downton Mortgages and Financial Services are available to provide you with the advice you need to help you find the perfect policy and peace of mind.

The information contained within was correct at the time of publication but is subject to change (June 2024).

Please note for these insurance products, terms and conditions apply. This information is a summary only. You will receive a full policy document upon application. This policy will set out the terms, conditions and limitations of cover provided under the plan.