Income Protection Advice

Providing professional income protection advice throughout Devon and the surrounding counties.

Income Protection Insurance

If you suffer an accident or long term illness which means you can no longer work, your income may reduce dramatically or even stop completely. Some employers offer their employees excellent benefits packages meaning income would continue, however unless you are a public sector employee, these cases are in the minority.

Whilst state benefits may replace some of your income, the amount that you would likely receive could mean a considerable drop in income, and could even result in severe financial hardship. Having some form of income protection in place removes the uncertainty surrounding state benefits, and guarantees your financial security.

Income Protection policies can be separated into two categories;

Short Term Protection

Short term income protection is available in the form of either Mortgage Payment Protection Insurance (MPPI) or Accident Sickness and Unemployment Cover (ASU).

Both policies pay you an income if you cannot work due to accident and or sickness and or unemployment. The main difference is that Mortgage Payment Protection insurance is designed to cover your mortgage repayments and some associated costs whilst ASU is free standing.

In order for income to be payable you must be unable to work for a set amount of time, this is known as the deferred period. You can specify your own deferred period as anywhere between 1 day and 12 months to relfect your circumstances. For example, if your employer will continue to pay you for 3 months in the event of sickness, a 3 month deferred period might be suitable. The shorter the deferred period, the higher the premium.

You can choose how much income you wish to be paid (subject to a maximum of usually up to 50-75% of your income), and you can also choose whether or not you wish to be covered for accident, sickness, unemployment or all three.

The Benefits:

The disadvantages:

Long Term Protection

Long Term Income Protection is available in the form of Income Protection Insurance (IPI) (previously referred to as Permanent Health Insurance (PHI)), which pays you an income if you are unable to work due to accident or sickness for a minimum amount of time (the deferred period). Once income becomes payable it is payable for the earlier of; the duration of the policy or your return to work. If you return to work on a reduced salary a partial benefit may be available.

You can choose the policy term and it is common for policies to continue to retirement. You can also elect for your premiums to remain the same for the duration of the policy, however long your policy term is.

Advantages:

Disadvantages:

How we can helps?

Hedgelands has over 25 years of experience advising clients about income protection, and offers truly impartial advice. We can help you to understand which policies offers the best real value and are the most suitable for your circumstances.

For more information, to discuss your circumstances, or for a quote, call 01626 360654.