Income Protection

We understand that choosing the right Income Protection is an important decision. Here are some of the most common questions relating to Income Protection to help you make your mind up:

Why do I need Income Protection?

The likelihood of being unable to work due to illness or accidental injury is greater than you may think: over 2 million have been claiming Incapacity Benefit for more than 6 months¹.

If, like them, you were suddenly to lose your regular income, could you meet your financial commitments, especially in relation to your home and family?

What are the most common types of claim?

Mental illness (including stress and depression), musculoskeletal problems (relating to muscles and bones and including back pain), heart disease and cancer.

The most common types of claim our customers benefit from are in similar proportion to the most common causes of illness and injury across the UK.

What's the difference between Income Protection and Critical Illness?

Income protection is designed to pay out a regular monthly amount to replace a significant part of your income if you are unable to work due to most illnesses or accidental injury whereas critical illness insurance pays out a lump sum if you suffer from one of a number of specified illnesses or conditions.

Most Critical Illness policies pay out on an average of around 30 defined conditions and do not cover a number of key areas.

These exclusions generally include mental illness (including depression, stress, anxiety, etc) and most musculoskeletal conditions (i.e., back problems) - two of the most common types of illness in the UK. The ABI Guide to Income Protection explains more.

I thought the State would help provide for me if I was ill or injured?

Yes, it does, to a certain extent. The current payment for short-term State Incapacity Benefit is £326.73 a month.

Unless this is enough to cover all your financial commitments should you lose your income through illness or injury, our Income Protection Solutions can help bridge the gap to maintain your current lifestyle.

Are there certain people who cannot be covered?

Yes. People who are unemployed, students, in the Police or most Armed Forces personnel.

Does the policy cover me for redundancy?

No. Income Protection covers illness and accidental injury.

¹ Department of Work and Pensions - April 2008.