Income protection insurance
Income protection can replace your salary if you are not able to work due to an accident or illness. It can also provide cover for involuntary redundancy. People may take out income protection to cover:
- Mortgage repayments.
- Loan repayments.
- Utility bills.
- Food shopping.
Why do I need income protection?
Income protection could be the most important type of insurance you buy. It can provide support if you cannot work and without it, many people would have to use their savings or rely on state benefits.
Did you know that:
- Half the population has under £4,300 in savings?
- The average cost of raising a child to age 11 is £85,000?
- Over 300,000 people leave work due to ill health each year?
- Around 1,300 people are made redundant in the UK every day?
Income insurance can protect your income if:
- An accident stops you from working.
- An illness causes you to take time off work.
- You are made redundant involuntarily.
Income cover can provide you with a tax-free monthly sum of up to 65% of your gross salary. In 2013, insurers paid out on 91.1% of all claims made.
What types of income protection are available?
Long-term income protection
Long-term cover can pay a tax-free income if you are not able to work due to an illness or accident. Cover can last until you are able to return to work or until you retire.
Short-term income protection
Short-term cover can protect you for up to 12 months. You can cover yourself against accident, sickness and involuntary redundancy. If you make a successful claim it will pay you a monthly tax-free sum to help with your living costs.
Compare income protection insurance with ActiveQuote
ActiveQuote is one of the leading comparison sites in the UK and we also partner Confused.com, Gocompare and uSwitch.
We compare income protection insurance quotes from the UK’s leading insurers. Our panel includes:
- Bright Grey
- Legal & General
- Scottish Provident
- Vitality Life