Income Protection is a type of insurance that pays out if you have an illness or disability that prevents you from working. You will receive payments through a regular income until you can return to work or retire.
Income Protection covers you for many different types of illnesses and disabilities, but the expectation is that you will be able to return back to work eventually. In some cases, you may not return back to work and in this case, your insurance will expire once you reach retirement age. Income Protection can pay out more than once, however, there is a cap on how much you can receive which is based on your salary.
You will also need to provide a deferred period for your policy. This period is the length of time that it will take for your policy to start paying out. At first, you will be required to use your savings, employee sick pay scheme or other means of income. Once the deferred period is over, the policy will start paying out. The shorter your deferred policy, the higher costs your premiums will be.
No two people are the same, there will be differences between most policies that are taken out. As a Protection Advisor in Birmingham, it is our job to recommend the right policy for you and determine what specifications you will need in place for your Income Protection insurance policy.
We’ve also dealt with customers who have never needed to claim on their insurance. At the end of the day, it is more important to have something in place just in case your circumstances change. If you want to find out whether or not Income Protection would be beneficial for you and your personal situation, feel free to contact us for a free insurance review in Birmingham.
It is possible to already have Income Protection Insurance in place. A lot of employers offer this as a part of their employee benefits program and therefore won’t need to take out a separate insurance policy. Your employment contract should have the details of any insurance policies your company offers.
If you already have another type of insurance policy, such as Critical Illness, you may not need Income Protection, you could already be covered. However, Critical Illness focus on illnesses and disabilities that will prevent you from working again, so it could still be worth covering short-term illnesses with Income Protection.
People may rather save money on Income Protection Insurance and use their savings instead. If you would rather use your savings, you will need to work out whether you are able to cover your living costs for the amount of time that you are required to have off. What would happen if you had another emergency and needed more time off work? Would you have more savings available to cover you?
At Birminghammoneyman, we can offer you a free Insurance review with one of our protection advisors. We can go through your personal and financial situation and see whether Income Protection will be the best option for you. Your lifestyle, age and medical history will be factored into your Insurance review so that we can work out what policy you are looking for.
Income Protection can be costly, as it can pay out numerous times. If you have other Insurances policies in place, it could be beneficial to work out the total costs and what you are covered for.
Upon taking out your policy, make sure that you are aware of what it pays out for and the conditions that come with the policy. Your Protection Advisor in Birmingham will help with this.
It is important to make sure that you are taking out the correct policy. When it comes to Income Protection Insurance, there are a few different types to choose from:
This type of Income Protection covers you for surprises that come out of the blue. In life, you may encounter accidents, illnesses and redundancy. These are all factors that will affect your income.
This protection pays out when you become ill, are involved in an accident or are made redundant. You will receive tax-free monthly lump sums that will make up for your lost income. These payments will approximately last for 12 or 24 months. With this policy, you are expected to return back to work.
If the policy pays out, you will be able to spend the money on whatever you want.
This type of income protection covers any existing monthly debt repayments such as loans, mortgages and credit cards that you’re unable to pay back. It pays out when you are unable to work.
Upon taking out the policy, you will have to specify how long you want the policy to pay out for. Usually, these types of policies are short-term.
If are unable to work and you are failing to keep up to date with your mortgage payments, this MPPI covers the costs. Rather than paying out your whole monthly wage, it is usually used to just cover your mortgage payments. Sometimes, you can receive a little extra per month to cover bills and other small expenses.
Typically, MPPI will only pay for up to 12 months or when you are able to resume working. If you return to work, you will stop receiving the payments.
Get in touch with a Protection Advisor in Birmingham for a free insurance review.
Our Mortgage and Protection Advisors in Birmingham want to make sure that you are protected and have the correct policy in place that will give you financial help when you need it most.
We have over 20 years of experience in the sector with all different kinds of policy types. We have helped many customers take out Income Protection products in the past and we could help you next!
Your Protection Advisor will be open and transparent with you at all times. From start to finish they will work for you, trying to find you the best deal possible based on your personal and financial situation.
Take a look at our reviews! We have collected a large handful of reviews from past customers sharing their experiences with us. Head over to our reviews page to read more.
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I have been dealing with Wendy and Malcolm in regards to my house purchase and I could not recommend these enough. A true credit to the company. Very efficient with communication and solving any issues that needed to be addressed. Would highly...
Incredibly helpful, supported throughout whole process
Fantastic experience. Charlie helped me race through to secure the best mortgage offer, best plan for life and critical illness insurance. Very approachable and responsive even with any queries I had after everything was completed.
Had great help from both Joe and Chris and Chloe who were all friendly and always happy to help
Made everything very easy, we are first time buyers and they couldn't have been more helpful or informative. They didn't make us feel like we were stupid for not know anything about buying a house and talked us through the entire process....
Tom and Meghan were brilliant throughout the entire process! Both were friendly and knowledgeable and explained everything to us clearly and answered our countless questions and gave us clarification where we needed it. Both were easy to contact and...
Super helpful, made the whole process really easy and explained everything as we went along. Pretty good at keeping in contact, keeping us up to date and explaining the choices we had and then giving us the time to discuss and make those decisions.
I must say I am very pleased with the service I recieved from Moneyman, they set up regular calls and kept us updated throughout the checking progress. Fairly priced fees and very knowledgeable! I would highly recommend their services
Second time with this broker and it's been an amazing experience. Would definitely recommend. Anna and Matt were brilliant.
We couldn't be happier with the service provided. Matt has been professional, helpful and extremely supportive throughout our process. We will certainly be recommending you to friends. Communication was 5* and Matt was available at any point...
Great team - very good communication and very nice, helpful team that made it possible for me! Thank you for the great service.
To say we have had a nightmare of a process of trying to buy a house would be an understatement, however Wayne and team were the bright light that helped us get through it. Can't thank them enough for their help.
That nice 😊
Brilliant service! Would highly recommend! Tom at the Birmingham branch was amazing. We're first time buyers so we were very unsure of the whole process and had lots of questions. Tom gave us all the support and guidance we needed and was there...
Moneyman were really supportive during this process. After our first house fell through following downvaluation, they were really helpful in outlining the process moving forward and supporting us through the next house sale. Couldn't be happier...
Thank you so much for your support Even when I Couldn't get hold of anyone else During the pandemic Your staff were there to encourage me to press on with the mortgage after Thanks for your help and the guidance Thanks for giving me a chance...
Very good service, unbelievable fast to apply my mortgage. Thank you all of you.
Aaron was both very friendly and helpful over the phone.
Dale was a Very lovely person to speak to. Gave all the best advise he can and was very polite. Made me reassured with a few problems I may have but gave me a few options around getting a mortgage
They found the best deal to suit us and was quick and efficient with outstanding communication. Would definitely recommend!