Income protection insurance FAQs

As a team of specialist online insurers, our customers often ask us questions about income protection insurance, and so they should – that’s exactly what we’re here for. Although we are more than happy to answer any questions over the phone, we have also compiled this helpful list of income protection insurance FAQs to provide the information you need.

What is income protection insurance?

Income protection is a form of insurance cover which provides you with a replacement source of income if you are unable to work due to long-term illness or accidental injury. Typically, income protection insurance pays up to 75 per cent (less social welfare payments if any) of pre-illness income, and will normally not payout until you have been off work for a period of 13/26 52 weeks. It will continue to payout until you are fit enough to return to work or you retire.

Why might you need income protection insurance?

Official statistics show you are three times more likely to go on long term sick leave during your working life than you are to die. This statistic in isolation is hardly surprising, but when you consider that only one in ten people have income protection insurance, whilst many more have life insurance, is seems that many individuals are left without the protection they need.

Not only does income protection insurance protect your income, it also ensures that your regular pension contributions are made, despite the fact that you are not able to work.


What should you consider before taking out income protection insurance?

Before taking out income protection insurance you should ask yourself the following questions:

–  Do you already have an income protection insurance policy provided by your place of work? Some employers provide this as a benefit of employment. Ask your HR department of consult your contract of employment to determine whether this is the case.

– Do you have some other form of illness insurance combined with another insurance product which provides cover for serious illness?

–  Do you have substantial savings? If you have savings then you might be able to manage without income protection insurance. However, you should think carefully about whether you’re happy to rely on your savings. Will your savings be enough to cover a prolonged period of ill-health?

Are there any exclusions?

There are certain types of illness which are not always covered by income protection insurance. Examples include illnesses which either you or a member of your family have had before, known as pre-existing conditions.

Some policies will cover pre-existing conditions whilst others will not. Insurers will look at your family history and possibly attach conditions to their acceptance of your policy. These should all be explained to you clearly before you sign up for the insurance.

If you have any other questions about income protection insurance, please call 1890 917 917 and our experienced advisers will do all they can to help.