INCOME PROTECTION INSURANCE BELFAST NI
I help people from Belfast, Northern Ireland protect their wages with Income Protection Insurance.
It's a policy that protects you against loss of income due to illness or accident. It could provide you with a monthly tax-free income and could continue to pay out until you are able to return back to work or retire.
Each year almost one million people in the UK find themselves unable to work due to a serious illness or injury. Income protection insurance is designed to give you some cover if you can’t earn an income for those reasons. If something happened to you would you be able to survive on savings, or on sick pay from work? If not, you’ll need some other way to keep paying the bills and you might want to consider income protection insurance.
What is income protection insurance?
Income protection insurance (sometimes known as permanent health insurance) is a long-term insurance policy designed to help you if you can’t work because you’re ill or injured.
It ensures you continue to receive a regular income until you retire or are able to return to work.
It replaces part of your income - if you can’t work because you become ill or disabled.
It pays out until you can start working again - or until you retire, die or the end of the policy term - whichever is sooner.
There’s often a waiting period before the payments start - you generally set payments to start after your sick pay ends, or after any other insurance stops covering you. The longer you wait, the lower the monthly premiums.
It covers most illnesses that leave you unable to work - either in the short or long term (depending on the type of policy and its definition of incapacity).
You can claim as many times as you need to - while the policy lasts.
With income protection insurance, everything depends on getting the right policy – so it’s best to get advice from an independent financial adviser or broker.
It’s not the same as critical illness insurance, which pays out a one-off lump sum if you have a specific serious illness.
It’s not the same as short-term income protection, which also pays out a monthly sum related to your income, but only for a limited period of time (normally between two and five years) and can cover fewer illnesses or situations.
Do you need it?
Almost one million workers a year find themselves unable to work due to a serious illness or injury.
It doesn’t matter whether or not you have children or other dependants – if illness would mean you couldn’t pay the bills, you should consider income protection insurance.
You’re most likely to need it if you’re self-employed or employed and you don’t have sick pay to fall back on.
Check what your employer will provide for you if you’re off sick.
Who doesn’t need it?
You might not need income protection insurance if:
You could get by on your sick pay. For example if you have an employee benefits package which gives you an income for 12 months or more.
You could survive on government benefits. But they might not be enough to cover all your outgoings.
You have enough savings to support yourself. Remember that your savings might need to see you through a long period.
You could take early retirement. If you’re near retirement age, perhaps you could afford to retire early. If you’re unable to return to work you might be entitled to take your pension early.
Your partner or family would support you. Perhaps your partner has enough income to cover everything the two of you need.
How much does income protection insurance cost?
How much you pay each month will depend on the policy and your circumstances.
Usually income protection insurance covers a wide range of illnesses and situations and has the potential to pay out for many years.
The cost of a policy will vary based on a number of factors, including:
whether you smoke or have previously smoked
the percentage of income you’d like to cover
the waiting period before the policy pays out
the range of illnesses and injuries covered
health (your current health, your weight, your family medical history).
If you want to compare providers such as Aviva, Vitality, AIG, Liverpool Victoria and more, get in contact with me.
I can give you professional unbiased advice on the best providers to suit your budget and needs.
Other types of insurance to consider
There are also other insurance products you can use to protect yourself from money problems if you’re ill or injured or if you die and you want others to be protected.
Do you need life insurance? This product provides some financial support to your dependants if you die.
Do you need critical illness insurance? This type of policy will provide you with a tax-free ‘lump sum’ if you’re diagnosed with a serious illness covered by your policy.
Do you need short term income protection? This product will cover your essential outgoings if you can’t work for a short period of time.