Terms and Conditions apply but in general…
Your ability to earn money is your biggest asset. It enables you to pay for life’s necessities and niceties, many of which you’ll insure as they’re important to you: your car, your house, your pets, your phone, your appliances, your holiday. But what about insurance for your income? Without your income, how will you pay for those necessities? Never mind the niceties!
Are you aware that you can take out insurance to protect your income? There are a variety of Income Protection Insurance products that provide cover for your income, your mortgage or your rent payments. It's available for the self-employed too.
In simple terms…
* It pays you a monthly sum if you are unable to work due to an illness or injury resulting in a loss of earnings.
* The payments are designed to replace income to pay for mortgage or rent, food, day to day costs, household bills etc.
* It is paid until you recover, return to work, the policy term ends or you die.
How much will Income Protection Insurance cost me & what will I get in return?
The premium you pay and the amount of benefit you receive is based on a quote tailored to your individual circumstances and requirements, including:
• How much you earn(1).
• How much money you need for essentials e.g. rent/mortgage, food, utilities.
• How much you pay each month; policies are tailored to fit your budget.
• How long you can wait before you start to receive payments.
• How long you want to receive benefits for.
• Your age.
• Your health and lifestyle.
• Family health history.
If you are unable to work, how will you pay for your necessities? Never mind the niceties! Savings? Family or friends? Take out a loan? State benefits? Statutory Sick Pay (not available for the Self Employed)? Crowd Funding? How long will that last?
I’m Self Employed, can I protect my income?
Yes you can. When you arrange a policy the amount of benefit will be based on a percentage of your average monthly self employed income(1).
Will I need to provide medical evidence?
This will depend on your health, lifestyle and family history. You may be asked to allow an insurance company to have access to your GP records or to carry out a medical assessment by telephone or in person. If you have an existing medical condition you can still be considered for a policy, but conditions may be applied.
Will my policy pay out if I have Covid?
If you have long Covid, then potentially yes. There is a period of time before policies start paying out. The minimum deferred period is usually 4 weeks(2), by which time most people with Covid will have recovered and be back at work.
I’ll just claim Statutory Sick Pay if I can’t work due to illness or injury…
You can receive Statutory Sick Pay (SSP), Employment & Support Allowance or Universal Credit in addition to receiving a payment from an Income Protection Policy. However, state benefits are unlikely to cover all of your essential expenditure(3). SSP is not available for the self-employed.
Sometimes you get something for nothing...
Many insurers offer a range of benefits at no extra cost which may include: death benefit, hospital benefit, doctor second opinion, nurse service, mental health advice, rehabilitation support, fracture payments.
How much will you charge me?
There is no charge for gathering your details and providing you with a quote. If you decide to take out a policy, the insurance provider will pay me directly for arranging the plan. If you decide not to take out a policy, you will still not be charged.
Sophie is a 35 year old Carer. She doesn’t smoke, is 5’6” tall, weighs 9 1/2 stone and she’s in good health. Her take home pay each month is approximately £1,000. For £18.93 a month, Sophie could take out an Income Protection insurance policy which, after an 8 week deferred period, would pay her £600 a month for 2 years, or until she is well enough to return to work.
Get in touch
Cansquared Ltd, Unit 13, Hebden Bridge Town Hall, St George’s Street, Hebden Bridge HX7 7BY
(1) Policies pay a percentage of normal take home pay, not the full amount you’d usually earn.
(2) You select the deferred period, the shorter the deferred period the higher the premium.
(3) Currently Statutory Sick Pay (SSP) of £96.35 a week for up to 28 weeks (if you meet the criteria), then Employment & Support Allowance (ESA) of £74.70 a week for up to 13 weeks (if you meet the criteria). SSP is not available for Self Employed.
Get in touch to find out how much it would cost for you to insure your income.