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Why should I invest in Income Protection?
Having Income Protection means you will not need to use your savings or rely on state benefits if you are unable to work through sickness or accidental injury. Ask yourself the following questions:
- Would state benefits of up to £101.15 a week* allow me to maintain my current lifestyle?
- Could I live off my partner’s income indefinitely?
- Do I have savings I could live off indefinitely?
If the answer is no to the above, then you should probably consider Income Protection. An Income Protection Policy will provide you with a regular tax free benefit to give you time to get back on your feet after an accident or an illness.
Some Income Protection policies will also replace your income if you are made redundant. There are currently more than 800,000 people in the UK who have been out of work for more than one year following redundancy, according to the Office of National Statistics. An Income Protection policy will give you the financial support you need when looking for a new job.
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For how long will Income Protection pay in the event of incapacity?
The benefit period is the length of time that your policy will pay you for if you are unable to work through illness or accidental injury. There are two main types of Income Protection: long term and short term.
Long term Income Protection
Otherwise known as permanent health insurance (PHI), Long Term Income Protection is designed to replace your gross monthly income right up until retirement age should you be unable to work due to illness or injury.
Short term Income Protection
Otherwise known as Accident, Sickness and Unemployment (ASU), short term IP replaces your income for up to 12 months should you be unable to work due to accident, sickness or forced unemployment. Accident, Sickness and Unemployment can be used to cover your general lifestyle costs, or it can be tied to a particular debt.
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Do I get any money back if I don’t claim before the end of the policy?
You will not get your money back if you do not claim before the end of your Income Protection policy.
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Is my benefit tax-free?
Yes, Income Protection Insurance will pay you a monthly tax free benefit to replace your income.
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How much will Income Protection cost me?
The price of Income protection can vary hugely depending on the type of policy you choose. The premiums are calculated based on the amount of cover you require, the length of cover you require, your age, your smoker status, and sometimes even your current health and your occupation.
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What exclusions might my Income Protection policy have?
A typical short-term Accident, Sickness and Unemployment (ASU) policy will exclude you for the following:
- Dangerous sports or occupations
- Deliberate self-injury
- Any pre-existing medical condition related to stress, back problems or normal pregnancy
- AIDS-related conditions
- Conditions due to drug and/or alcohol abuse, or criminal activity
If your policy also includes unemployment cover, you will not be protected if you:
- Knew or had reason to believe you might become unemployed
- If your work is temporary or seasonal, or you accept voluntary unemployment
- Become unemployed within the initial exclusion period.
All long-term Income Protection policies will need to be medically underwritten, so pre-existing conditions may be excluded from the cover. A full list of exclusions will be provided with your policy.
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Why should I compare Income Protection with ActiveQuote?
At ActiveQuote we understand that choosing an Income Protection policy can be a daunting task. That’s why our online comparison system will compare long and short term IP policies to help you find a quote that suits your needs and your budget. We compare Income Protection policies from all the leading UK insurers, and allow you to change your options online with instant updates to the price.
If you are struggling to decide on an Income Protection policy, an ActiveQuote advisor is always on hand with free, no obligation advice. For more information about us, take a look at our About ActiveQuote page.
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How does private medical insurance work?
Health insurance premiums are paid on a yearly, quarterly or monthly basis, and give you the choice of going private if you don’t want to be treated on the NHS.
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What types of cover are available to me?
Traditionally, health insurers offer comprehensive, standard and budget policies. However, many insurers are moving away from this approach and offering a ‘pick-and-mix’ scheme. This usually includes a core cover policy, supplemented by a choice of additional options.
ActiveQuote will show you all the options available from each insurer so you can easily get health insurance quotes tailored to your needs and budget.
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How can I save money on my health insurance policy?
With health insurance, your premiums will directly affect your level of cover. But there are ways to save money on your health insurance policy without sacrificing your policy. These include:
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Will my premiums increase as I get older?
Yes, your premiums will increase with age. This is because the older you get, the more likely you are to need to make a claim on your policy. The increase will depend on your insurer and your policy. Increases in premium are also attributed to the rise in the cost of medical procedures and changes in Insurance Premium Tax (IPT).
Whilst it is impossible to predict what your premium will be in the future, rest assured that an experienced broker like ActiveQuote Health Ltd. will always review your policy every year to ensure you're getting the best cover for the best price.
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Will I be covered for illnesses I’ve had in the past?
Health insurers will not cover you for pre-existing conditions. However, Moratorium plans could provide cover for these conditions in the future. Our guide to pre-existing conditions explains more about how this works.
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Will health insurance cover me for cancer treatment?
Only patients with comprehensive cancer cover will have access to certain treatments on their policy, like reconstructive surgery, stem cell transplantation, biological therapies and hormone therapies. Patients with basic cancer cover may only be able to claim up to a certain annual limit, such as £30,000.
ActiveQuote will show you the full details of each health insurance policy, allow you to tailor your quotes online with instant updates to the price, and adapt your cancer cover to your needs and budget.
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Will health insurance cover pregnancy?
Since pregnancy is not considered an illness, health insurance does not cover hospital treatment for normal pregnancy and childbirth. If you want to be treated privately for a normal pregnancy, you would have to pay for the cost yourself.
However, women who already have health insurance for a certain qualifying period could be covered for complications of pregnancy and childbirth.
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Will I be covered for a chronic condition?
If the chronic condition develops after the start of the policy, cover will be provided to stabilise the condition. Our guide to chronic conditions explains more about how this works.
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Is there anything health insurance will not cover?
There are some things that health insurance will not cover the cost of, such as voluntary medical treatment. ActiveQuote provides the full details of each policy and give you the option to add additional cover.
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Can I choose the hospital I am treated in?
One of the many benefits of private health insurance is the wide range of hospitals you can choose to be treated in.
However, some premium London hospitals require you to have additional cover. You can browse our free hospital search to see which policy covers your chosen hospital.
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How do I make a health insurance claim?
Making a health insurance claim is easier than you might think. It takes just a few simple steps to arrange your private healthcare.
- If you suspect something is wrong, visit your GP, who will decide whether you need to be referred to a specialist.
- Let your health insurance company know that you want to make a claim, and they will confirm the details of your condition and treatment.
- Finally, make an appointment with your specialist, who will arrange payment directly with your insurer.
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What happens if I have a medical emergency?
Medical emergencies are not covered by health insurance. If you require emergency care, you will be treated on the NHS in Accident and Emergency.
After you are stabilised, you will be transferred to a private ward in an NHS hospital or to a private hospital to be treated.
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Can I switch to another policy without losing cover?
Yes, you may be able switch to another insurer on a Switch/CPME (continuing personal medical exclusion) basis. The insurance company will transfer your underwriting onto your new policy, meaning they will continue to cover conditions that arose since you took out your old policy.
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Why do I need Life Insurance?
Life Insurance is designed to give you peace of mind that your loved ones are financially secure if you should die. Most people have two main reasons for taking out a life insurance policy:
- To pay off any remaining large debts like a mortgage
- To protect their family’s lifestyle, by meeting bills or paying for school and university fees
Life Insurance is not just for the breadwinner of the family. It can cost a small fortune to replace a housewife/ househusband, but a life insurance policy will help with the cost of replacement childcare.
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How much Life cover do you need?
If you are a homeowner with a partner or children, you will need enough cover to pay off your mortgage, as well as any other outstanding debts. You may also want life insurance to replace at least some of your income. How much a family needs will vary from household to household, so ultimately it is up to you to decide how much cover you can afford.
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What is Term Assurance Life Insurance?
There are two main types of Life Insurance: Term Assurance and Whole of Life. A term assurance policy will protect you until a key date in the future, like when your mortgage is due to be paid off or when your children reach adulthood. If you die within the policy term then the insurer will pay out, but if you do not die during the policy term you will not be paid and your premiums will not be refunded.
Level-term Life Insurance
A level-term life insurance policy is a type of term assurance policy. It will pay out a lump sum ( also called the ‘sum assured’) if you die within the specified term. With a level-term policy, the lump sum payable on death remains the same throughout the term, and your premiums usually stay the same too.
Decreasing-term Life Insurance
A decreasing-term life insurance policy is another type of term assurance policy. It will pay out a lump sum if you die within the specified term. However, with a decreasing-term policy the lump sum payable on death reduces over time. These policies are often used to cover a debt that decreases over your life, like a repayment mortgage. Premiums of a decreasing-term policy are usually cheaper than level-term cover.
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What is Whole of Life Insurance?
A whole of life policy will cover you for your entire lifetime rather than until a fixed date. Because it is certain that the insurer will eventually have to pay out, whole of life policies are more expensive than term assurance policies.
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How much does Life Insurance cost?
Your life insurance premiums will vary according to a number of factors:
- The sum assured (lump sum payable on death)
- The length of your policy
- The type of policy
- Individual lifestyle factors like your age, state of health and your smoker status
An ActiveQuote specialist will be able to help you find a policy with the right amount of cover at the right price.
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Will the cost of my Life Insurance policy increase?
The costs of your life insurance policy will not increase unless you choose a reviewable policy. Reviewable premiums are guaranteed for a set number of years, like the first five or ten years of the policy. A review will then be carried out to determine whether the premium is still appropriate for the level of cover. Your premiums may increase or decrease at this point. Reviewable life insurance policies tend to be cheaper to start with, but may become unaffordable in later life.
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Could I buy a joint Life Insurance policy?
Couples who both want to be covered with life insurance might consider a joint policy. A joint life insurance policy will cover two lives on a ‘first death’ basis. This means that the sum assured is paid out if the first person dies during the policy term. After this, the plan would end.
Whilst ActiveQuote can quote joint life insurance policies, it might be better to look for two separate policies. Two single life policies would pay out twice and will often be no more expensive than a joint policy. An ActiveQuote specialist can offer you two separate quotes if you would prefer.
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What about Critical Illness Cover?
Critical illness cover pays out a lump sum on the diagnosis of one of a number of predefined serious illnesses. This type of cover can be added to your Life Insurance policy. Take a look at our page on Critical Illness Cover for more information. Some life policies will include a Terminal Illness benefit which pays out if your illness is deemed to be terminal. This is not to be confused with a Critical Illness Cover policy.
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What types of life insurance are available?
Fixed Term
A fixed term policy will pay out a fixed lump sum of money if you were to die during the term of the policy. The amount the policy will pay out stays the same during the lifetime of the policy. A fixed term policy may be used to support your dependents, pay for future spending such as university fees, or pay off outstanding debts.
Decreasing Term
A decreasing term policy will also pay out a lump sum of money if you die before a certain date. However the money paid out will reduce over the period of the policy. Many people use this policy to cover a repayment mortgage or until your children turn 18 years old.
Whole of life
A whole of life policy covers you for your entire lifetime. There is no fixed term for the policy so there will always be a pay-out from the insurer when you die. This also means you will continue to pay for it as long as the policy remains in place.
Critical illness cover
This cover can be added to your life insurance policy. It pays out a lump sum if you are diagnosed with a specific critical condition. The conditions covered vary from insurer to insurer but typically includes cancer, stroke, heart attack, liver failure and many other serious illnesses.
Single or joint cover
Couples often consider a joint life policy as it is usually cheaper than single cover. However, a joint policy will only pay out once which means that if one partner dies, the other is no longer insured. It is important to consider whether this option provides enough for your family, or if two separate policies would be better for your circumstances.
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What kind of UK Mortgage Life Insurance Quotes are there?
There are two main types of life insurance for mortgage in the UK: decreasing and level term.
Decreasing mortgage life insurance
Decreasing mortgage life cover is a type of mortgage life insurance quote specifically designed to cover a repayment mortgage. The lump sum payable on death will decrease over time in line with the balance outstanding, reaching zero by the end of the mortgage life cover policy term.
Decreasing mortgage life assurance is often very cost effective. Because the mortgage balance falls over time, the premiums are usually cheaper than the same initial amount of cover for level term. However, because this is a type of term assurance, the mortgage life insurance quote will only pay out if you die within a specified time frame.
Level term mortgage life insurance
Level term mortgage life cover is taken out to cover an interest-only mortgage. This type of mortgage life assurance policy will pay a one-off lump sum of money if you die within the term, but the amount stays fixed over time.
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How much will Term Life Insurance cost?
You will find that term insurance premiums are cheaper than whole of life policies because the insurer is not guaranteed to have to pay out. For more information on whole of life policies take a look at our FAQs.
The cost of term life insurance will depend on many things, including the type of term life assurance policy you buy and your own circumstances. Things that could affect the cost include:
- Your smoking status: Smokers will pay higher term life insurance premiums than non-smokers.
- Your age: Older people and those with medical conditions may have to pay more for their term life insurance quotes.
- Your choice of policy: A level term life insurance policy will usually be more expensive than a decreasing term life insurance policy.
- The sum assured: The more money you choose to insure, the more expensive your term insurance policy will be.
Don’t forget, a joint term life insurance quote may not be as cost-effective as two standalone policies.
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How does Accident, Sickness and Unemployment Insurance work?
Should you be unable to work due to an accident, prolonged illness or involuntary unemployment, your accident, sickness and unemployment cover will pay you a tax free monthly amount for a pre-defined period. This monthly benefit is usually up to 70% of your income.
Accident, sickness and unemployment cover quotes will usually only pay out for 12 months, even if you are unable to return to work after this time.
