- Do you rely on a regular income in order to survive?
- If you couldn’t work, would you be able to meet your ongoing repayments like a Mortgage, car, food, school, etc?
Income Protection pays up to 75% of your income if you couldn’t work due to sickness or injury.
There are two main parts that make up this type of cover, and will determine the cost of your cover and how long you wait, and rely on this benefit.
- Waiting Period: Similar to an excess with car insurance, you have a period of time which you wait from the day you are off work, till the time your benefit begins to count.
The choices can be either 30, 60, 90, 120 days or 6 months – 2 years. You have to work out with your adviser how long you could potentially live without funding.
- Benefit Period: This is the maximum length of time you are paid when you are off work.
Your choices are either 1 year, 2 years, 5 years or Till Age 65 or 70.
The longer your benefit period is, the more premium you pay.
Premiums for Income Protection are also tax deductible and available to anyone who earns an income.
But what about self employed for Income Protection?
This will depend on your structure, whether you are a Sole Trader, Company, Partnership or Trust.
But as a general rule, you can consider your annual salary, profit, income split with a non working spouse amongst other things.
These guides won’t be the same for everyone, so it’s imperitive that you speak to one of our advisers below to help guide you to ensure you get paid your benefit when needed.