Choosing your income protection UK policy with care is essential if you are to get the policy you need with the benefits you want. If you take the time to compare the quotes with an independent provider you can make some of the biggest savings and you can check the length of time you need to wait to make a claim on the insurance and how long you would be eligible to make a claim.
To take out an income protection UK policy with the independent provider you can choose the percentage of your income you want to cover. The amount is agreed by your provider because it is the money you get back if you need to make a claim due to suffering from the events insured against. Your tax free income could be claimed once you have been unemployed or incapacitated for a period of time which is generally between 30 and 90 days. Some providers will date back the policy to day one of you suffering from one of your chosen events so this would need checking in the small print. Once you begin receiving payments you would continue to get an income monthly for 12 months or 24 months and then the income would cease.
You could be offered the option of choosing a 12/24 month policy and if this is the case you would have to take certain factors into account. One of these would be that a policy providing 24 months of cover would cost more than a one that pays 12 months of benefit. 12 months can be a long enough period for you to have made a recovery or found work but your policy would cease regardless of your current circumstances at the policies end.
With protection providing an income each month and there would not be the worry of having to make changes to your lifestyle to be able to find money for such as your rent/mortgage, utility bills such as gas and electric or your family’s food bill for the month. Of course these are just some of the essential outgoings that you may have coming in each month and so the income would be there for you to spend as you wished.
You can also choose to tailor your income protection UK policy so that you are only paying for protection that you need as the events you choose to cover would reflect on the cost of the policy. You can of course take cover for both unemployment and incapacity together and could make a claim if you lost your income to either of these events. If you do not want protection against incapacity you might choose to cover redundancy alone. Alternatively you might only want to protect against incapacity alone and with the independent provider you can.
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