Income Protection

 

Income Protection pays you a monthly income when you are unable to work

 

 

 

Income Protection

An Income Protection plan is an important consideration for anyone in fulltime employment. It provides insurance against what is arguably your most important asset, which is your ability to earn a living for you and your family.

 

Think what would happen if you suddenly lost this ability and could not work due to an accident or sickness. If you did not have an Income Protection plan, where would you find the money to pay for the following:

• Mortgage/rent
• Food
• Phone bills
• Utility bills
• Child care
• Car expenses
• Council tax
• Loans/credit cards
• Holidays
• Clothes

If you are employed your employer may pay you sick pay. But how much will you receive and for how long? You should of course check with your employer, but chances are that you will receive short term support and not necessarily anything beyond that, leaving you exposed if you suffer a long term sickness or injury.

 

If you are self employed, you may not have the luxury of ‘sick pay’ and your income may stop as soon as you are unable to work.

 

So where do you go from here and where could you find additional sources of income?

 

You may have some hard earned savings, but these could be frittered away very quickly if you are using it to pay off a mortgage and your everyday living expenses.

 

Another short term solution could be money from friends and family. But this is likely to be limited and would you really want to rely on them?

 

Many people believe the State will provide for you in these difficult circumstances and whilst they will provide support, you may not find it sufficient to live off.

 

Employment and Support Allowance is currently £64.30* a week, which is a helpful contribution, but could you honestly survive on this amount of money each week? You would probably struggle to do so.

 

A solution – Income Protection

This is why more and more people are taking out an Income Protection plan. The threat of an accident or sickness which would result in an absence from work is constantly around us. I’m sure you know of someone who has suffered a serious accident or illness and consequently been unable to work.

 

An Income Protection plan safeguards you against this threat. It pays you a monthly income if you can’t work which could be used to pay your living expenses so you can continue to provide for yourself and your family.

 

I’m sure the last thing you want on your mind when you are recovering from a serious accident or illness is money. This is the protection and peace of mind an Income Protection plan brings.

 

Choosing an Income Protection plan

There are a number of Income Protection plans available on the market. Some are short term, paying you for a maximum of 12 or 24 months, whilst others offer more long term peace of mind and pay you all the way up to retirement.

 

There is always a limit on how much ‘Income’ you can choose on a plan. It is usually limited to 50% - 70% of your gross earnings (depending on the insurer and whether they take into account other income/plans). This is to ensure you are not ‘better off’ financially as a result of being off work – a fundamental rule of the Financial Services Authority.

 

 

APRIL Insurety offer a large range of Income Protection plans

At APRIL Insurety, our Business Consultants can offer a wide range of Income Protection plans, from leading insurers such as:

 

• AXA
• Bright Grey
• BUPA
• Legal and General
• Liverpool Victoria (LV=)
• Royal Liver
• Scottish Provident
• Zurich Assurance

This means we are well placed to offer advice and provide Income Protection solutions to you.

 

Income Protection quote

We also offer competitive premiums on our own Income Protection plan:

 

 

Sovereign Income Assistance Plan - click here for a quote and more information

 

Free Income Protection advice

Remember, our Business Consultants can offer free face-to-face advice to help you find the right Income Protection plan for your individual circumstances. After all, when it comes to something as important as financial protection, we want to ensure you get it right!

 

 

To arrange a no-obligation appointment with your local APRIL Insurety Business Consultant, please click here.

 

 

_{*correct at Nov 2009, over 25 year olds, for first 13 weeks only, actual amount may differ depending on individual circumstances.}