Income protection protects your income and pays a monthly amount if you suffer an illness, injury or disability that prevents you from working. It can also be referred to as Permanent Health Insurance (PHI) and must not be confused with Payment Protection or Accident, Sickness and Unemployment cover.
When you consider that your most valuable asset is likely to be yourself, income protection should not be overlooked. The average worker earns their first £1,000,000 before they are 56 years and 6 months hold. Is this a sum you can afford not to protect?
You are eligible for cover if you work full or part-time and even if you are a house person. The maximum cover you are allowed does vary between insurers but is usually not more than 55% of your current gross salary.
The current income received from a claim is paid tax free. With most plans you will be eligible for a continued benefit if you go back to work in a reduced capacity.
In our opinion it is really important to look for own occupation income protection. This means that the policy will pay out if you are unable to do your specific job and represents the most comprehensive form of cover.