Income Protection

Income Protection is a long term policy that pays a regular weekly or monthly income when the insured becomes unable to work due to long term illness or incapacity. As long as the insured keeps paying premiums and complies with any relevant policy conditions, the insurer cannot cancel the policy.

There are restrictions regarding the level of cover that can be provided, and generally this is around 50% level of income generally received, this amount will vary according to the insurer used, with some lower and some higher. Some policies will also take into account any Employer and/or State benefits being paid.

The premium payable, will be affected by the following factors:

• What you do for a living
• Income prior to Incapacity and the Protection level covered
• Deferred Period - how long before benefits are paid
• Term - to what age is cover required
• Guaranteed or Reviewable Premiums
• Definition of Incapacity - incapacity can usually be defined as with 'an inability to follow your own occupation' or, less beneficially, 'an inability to follow any occupation'.

Income Protection is important and an area where advice should be sought, one size does not fit all, an area in which we can help you.