Income Protection Insurance
Income protection insurance is designed to provide a regular replacement income if you are unable to work because of illness or injury, subject to the terms of the policy.
Because cover can vary depending on your occupation, income, health, deferred period, benefit term and employment status, specialist advice can be important when reviewing your options.
Referral enquiries may be reviewed by a specialist insurance broker, subject to underwriting criteria, insurer acceptance, terms and conditions.
Specialist Referral Support for Income Protection Insurance
Income protection insurance can help protect your monthly income if illness or injury prevents you from working for a period of time.
Quote Monkey may be able to refer your enquiry to a specialist insurance broker or adviser who can review your occupation, income, employment status and cover requirements.
What Can Income Protection Insurance Provide?
Monthly Replacement Income
Income protection insurance may provide a regular monthly payment if you are unable to work because of illness or injury, helping with bills, mortgage or rent, household costs and other financial commitments.
Deferred Period Options
The deferred period is the waiting time before payments begin. Options may vary, and choosing the right period can depend on sick pay, savings, employment benefits and household finances.
Short-Term or Long-Term Benefit Options
Some policies may pay for a limited period, while others may continue until you return to work, retire or the policy term ends, subject to the policy selected.
Cover for Employed or Self-Employed People
Income protection may be suitable for employed workers, self-employed people, contractors, freelancers and business owners, depending on insurer criteria.
Occupation-Based Cover
Premiums and availability can be affected by the type of work you do, whether your role is office-based, manual, specialist, high-risk or involves travel.
Who May Need Income Protection Insurance?
Income protection insurance may be suitable for:
Employees with limited sick pay
Self-employed workers
Contractors and freelancers
Sole traders
Company directors
People with mortgage or rent commitments
Parents and families relying on one or more incomes
People with regular household bills
Professionals with specialist occupations
Manual workers who rely on physical ability to earn
Business owners whose income depends on their work
People without large savings to fall back on
Factors That Can Affect the Cost of Income Protection Insurance
The cost of income protection insurance can vary depending on personal circumstances and policy choices. Common factors include:
Age
Occupation
Income level
Employment status
Health and medical history
Smoking status
Deferred period
Monthly benefit amount
Benefit payment period
Policy term
Whether the cover is level, increasing or reviewable
Lifestyle and hazardous activities
Existing sick pay or employee benefits
Types of Income Protection Cover to Consider
Full-Term Income Protection
This type of policy may pay an income until you return to work, the policy ends, or retirement age is reached, depending on the policy terms.
Short-Term Income Protection
Short-term policies may pay for a limited period, such as 12 or 24 months, depending on the option selected.
Accident and Sickness Cover
Some policies may focus on accident and sickness-related inability to work. Cover and definitions should be checked carefully.
Own Occupation Cover
Own occupation definitions may be valuable because they consider whether you can do your specific job rather than any work at all, subject to insurer terms.
Increasing Benefit Options
Some policies may allow benefits to increase over time to help reflect inflation or rising household costs.
Information a Specialist Adviser May Ask For
To review an income protection referral, an adviser may ask for:
Your age and occupation
Employment status
Gross income
Monthly benefit required
Existing sick pay entitlement
Savings or emergency funds
Mortgage, rent and household commitments
Health and medical history
Smoking status
Hazardous hobbies or activities
Preferred deferred period
How long you want benefits to pay
Whether cover is for personal or business protection
Any existing protection policies
What May Not Be Covered
Income protection insurance cover depends on the insurer, underwriting decision, policy wording, medical disclosures, exclusions and claim circumstances. Common restricted or excluded areas may include:
Pre-existing medical conditions unless accepted by the insurer
Non-disclosed health issues
Claims during the deferred period
Unemployment or redundancy unless separate cover applies
Income above the maximum insured percentage
Certain hazardous occupations or activities
Self-inflicted injury or deliberate acts
Claims that do not meet the policy definition of incapacity
Periods where you are still able to work under the policy definition
Claims outside the policy term
Always check the full policy wording, schedule, exclusions and conditions before relying on cover.
Request a Specialist Broker Referral
If you need income protection insurance reviewed by a specialist broker or adviser, you can submit details of your income, occupation, employment status, sick pay and cover requirements.
Referral enquiries may be reviewed by a specialist insurance broker, subject to underwriting criteria, insurer acceptance, terms and conditions.