Income protection for dummies

Navigating the world of income protection insurance can be a daunting task. That's why we've put together this ultimate guide to help you understand the basics of this policy.

Read on to learn more about income protection insurance, how it works, and how it could help you if times get tough.

What is income protection insurance?

First things first. Income protection insurance is a financial safety net if you can't work due to illness or injury.

This policy pays you a regular sum, ensuring you can still pay your bills and maintain your lifestyle until you can return to work.

Not only does income protection insurance give you peace of mind, but it also ensures that you and your family can maintain your lifestyle even if you can't earn for a period.

Why get income protection?

Firstly, why not? If it fits your affordability and you’re employed, then it’s worth looking into.

Income protection insurance provides a regular income – typically up to 60% of your gross salary – during the period you're unable to work, meaning you can still pay your bills, maintain your lifestyle, and have one less thing to worry about while you’re off work sick.

How much does income protection insurance cost?

Unlike an item in a shop where you can see the price on the label, income protection insurance costs are unique to you and tailored to your specific needs and lifestyle.

Perks for days

Modern income protection policies often come with added value; think of these as bonuses to enhance your well-being. Depending on which provider you are with, these can range from:

• Expert second opinions for diagnoses
• Online mental health support
• Access to 24/7 virtual GP appointments
• Up to 36% off FitBit devices
• Up to 40% off Garmin watches
• Up to four therapy sessions/year
• Support from personal nurses for a range of mental health problems
• Free 12-month Headspace subscription**
• Up to 50% off gym memberships
• Up to 81% off Bluecrest health screenings

How much income protection do you need?

Choosing the right amount of income protection isn't one-size-fits-all.

Your needs depend on several factors - from being the family's primary earner with a mortgage to being a singleton who rents. Your job's risk level, savings, and other benefits you already have also play into the equation.

Bottom line: we can tailor your policy to fit your unique financial landscape so you're covered, not overburdened if life takes a turn.

How is the cost calculated?

After getting to know you and assessing your health and occupation, we search through leading income protection insurance providers to find the one that best suits you. Several factors influence the cost of your policy:

• Occupation
• Medical history
• Age
• Lifestyle choices
• The percentage of income you want to cover

The numbers don’t lie

In 2022, there were 185.6 million missed work days.

Life's unpredictability is a constant; while we can't predict what will happen next, we can prepare for it. Illness and injury continue to disrupt countless lives each year, turning the task of going to work into a feat.

This alarming figure underscores the importance of having income protection insurance in place. With the right policy, you’ll be able to handle any curveballs life throws at you, ensuring that unexpected time away from work doesn't translate into financial hardship.

What could the money help you with?

Suppose you can’t work as usual because of illness or injury. In that case, your income protection policy's monthly bursts of cash can help you pay for all sorts of things. Here are just some of the things it could help you contribute towards:

• Rent or mortgage payments
• Childcare costs
• Food shopping
• Utilities

What does income protection not cover?

Income protection insurance can cover all illnesses (even mental health conditions).

The only thing your policy won’t cover you for is if you lose your job or get made redundant.

We're always here for you

Our commitment to you doesn’t end once you’ve taken out cover.

Our award-winning customer care team is here to help you and answer any questions or concerns. Should the need arise to make a claim, our dedicated claims team will guide you through the process.

*Free benefits are not contractual and may be removed at any time
**Headspace reward is available on qualifying plans and is subject to T&C’s