Protect
your income

Specialist help to find the right income protection policy

There are different types of policy available, covering general outgoings or specific loans such as your mortgage or credit card debt and even your divorce or child maintenance payments.

Why choose income protection insurance?

If you are unfortunate enough, through no fault of your own, to lose your job or are unable to work due to an accident or sickness, income protection policies can give you the ability to cover your expenses. Income protection policies are designed to allow you to focus on getting healthy or getting back into work by reducing the financial stress that inevitably follows being made redundant or unable to work due to an accident or sickness.

An income protection advisor specialises in helping you safeguard your income in case you’re unable to work due to illness, injury, or disability. Here’s how an income protection advisor can assist you:

1. Assessing Your Financial Needs

• Personalised Evaluation: An advisor will evaluate your current financial situation, monthly expenses, and existing financial commitments (e.g., mortgage, loans, dependents) to determine how much coverage you need.
• Identifying Risks: They will assess the specific risks you face, such as the nature of your job or pre-existing health conditions, and recommend the right policy that covers these risks.

2. Explaining Income Protection Policies

• Clarifying Policy Types: There are different income protection policies with varying terms, such as short-term or long-term coverage. An advisor will explain the differences and help you choose between options like:
  • Short-term Income Protection: Covers for a limited period (e.g., 1-2 years).
  • Long-term Income Protection: Provides coverage until you can return to work or reach retirement.
• Choosing the Right Waiting Period: They’ll help you determine the best “waiting period” (the time between when you stop working and when payments start), balancing premium costs with the coverage you need.

3. Finding the Right Policy

• Comparing Providers: An independent advisor can compare policies from multiple insurers, finding the best fit in terms of cost, coverage, and benefits tailored to your situation.
• Customising Coverage: They help tailor the policy to your needs, including the amount of income you’d like to replace (typically between 50-70% of your salary) and the length of time the benefit will be paid out.

4. Understanding Policy Exclusions and Limitations

• Explaining Exclusions: An advisor will clearly explain any exclusions in the policy, such as conditions that aren’t covered (e.g., pre-existing medical conditions), so you’re fully aware of what your policy entails.
• Policy Flexibility: They can help you choose policies that offer flexibility, such as coverage that can be adjusted if your income or circumstances change.

5. Advising on Premiums and Costs

• Balancing Premiums with Coverage: An advisor helps you find the best balance between affordable premiums and comprehensive coverage, making sure the policy fits within your budget without compromising on essential benefits.
• Premium Types: They will explain different premium structures (e.g., “level” premiums that stay the same over time or “stepped” premiums that increase as you age) and help you choose the most cost-effective option.

6. Helping Navigate the Application Process

• Simplifying Paperwork: The advisor guides you through the often complex application process, ensuring you provide all the necessary documentation and medical information accurately.
• Medical Exams & Underwriting: They can help manage the medical exam process and explain how the results affect your premiums or coverage, making it easier to get approved.

7. Adjusting Your Policy Over Time

• Reviewing Coverage: As your financial situation changes, your advisor can help you review and adjust your policy. For example, if your income increases, your coverage amount may need to be raised.
• Updating Terms: They’ll ensure the policy keeps up with life changes, such as career changes, marriage, or additional dependents.

8. Assisting During a Claim

• Filing a Claim: If you’re unable to work, an income protection advisor can assist in the claims process, ensuring you file all necessary paperwork correctly and avoid delays.
• Maximizing Benefits: They can also help ensure you’re receiving the maximum benefits from your policy and guide you on what additional support (e.g., government benefits) might be available during your time off work.

9. Providing Ongoing Support

• Regular Policy Reviews: A good advisor will periodically review your policy, especially if there are changes in your work status, salary, or family needs, to ensure your coverage remains adequate.
• Adjusting Premiums: If you’re facing financial difficulties, they can help explore ways to adjust premiums temporarily without losing coverage.

10. Complementing Other Insurance Types

• Integrating with Life and Health Insurance: Income protection advisors can ensure your income protection works well with other policies you might have, such as life insurance, or health insurance, for comprehensive financial protection.

In Summary:

An income protection advisor helps you choose the right coverage to ensure your financial stability in case you can’t work due to illness or injury. They provide personalised advice, find cost-effective policies, simplify the application and claims processes, and adjust your coverage as your needs change.