Unfortunately the likelihood of being unable to work due to an illness or accidental injury may be greater than you think. An Income Protection Solutions policy can help insure against this type of loss in income helping you to cope with the cost of basic every day necessities such as household bills and mortgage payments as well as other things you value in life.
You will not be covered if you stop paying premiums. However, premiums are not payable when you are receiving regular benefit following a claim.
The cover may be less than you need if you don't review it regularly to keep it in line with your earnings. On the other hand, if your income does not support your chosen cover, your benefit will be reduced. Premiums will not be returned if this happens.
The benefit paid under your Income Protection Solutions policy may affect your claim to some means-tested State benefits.
State benefit rules may change.
The benefit paid under this policy may affect your claim to benefits under any other Income Protection policies you may hold.Key Features
- Guaranteed benefits every month - your benefits are guaranteed every month, until you are fit to go back to work or until the policy terminates.
- Maximum annual benefit of 60% of the first £25,000 of your gross earnings plus 50% of the remainder (up to a maximum of £180,000 per annum).
- Tax free payments - benefits payable under an Income Protection Solutions policy are tax free under current UK tax rules (the present tax-free treatment of the policy's benefits may change in the future).
- Waiver of premiums - there are no premiums to pay when you are in receipt of the benefits payable under the policy terms.
- Hospital Benefit - after you have spent 7 consecutive nights in hospital, your policy will pay you £75 for each extra night provided it is within the deferred period, for a maximum of 90 nights.
- Career break option - under this option the cover and premium will be reduced to the houseperson's level. If you return to work within 5 years and have completed 3 consecutive months of employment, cover can be restored to the previous level without the need for further medical underwriting.
- Guaranteed Insurability option - this option allows you to increase your benefit from your current level (within specified limits) without further medical underwriting in the event of a house move, home improvement, getting married/forming a civil partnership, becoming a parent or receiving a significant salary increase.
- Minimum term of 5 years.
- Premiums can be paid monthly (minimum £10) or yearly (minimum £120) by direct debit.
- You must be aged between 18 and 54 to take out an Income Protection Solutions policy.
If you would like to know more about the risk factors and key features of the Income Protection Solutions policy, please contact your local branch to speak with a Financial Planner.