The INFORMED Overview

Income protection covers a percentage of your income if you are unable to work because of accident or sickness.

income protection – The key pointers

  • Income Protection replaces the discredited PPI Schemes
  • Longer pay out option than simple ASU
  • Many options for the long and short term
  • Often with increasing premiums through the life of the policy

Income Protection

Income Protection offers a  more comprehensive cover than the discredited PPI schemes but care should be taken into what conditions and the degree of incapacity are covered.

There are two main types each with a number of variations:

Long-term income protection:

Will provide cover  until a fixed age, death or return to work.  As it is underwritten at the start of the policy, rather than when a claim is made  cover is laid down at the outset  but also precluding any pre-existing conditions  not insured.

Short-term income protection:

Also underwritten when taken out  known as STIP, has a fixed maximum pay-out period of between one and five years.

Guaranteed:

The premium stays the same throughout the policy term and will only rise if the cover is increased.

Reviewable:

Will start a cheaper than Guaranteed however premiums are reviewed typically every five years ( although some can have as little as 30 days notice)when the provider make an increase

Age-related:

Suit those in higher-risk jobs and smokers  as age is the determining factor.  They often starting with a lower premium  although it will rise each year by an agreed amount as you age.

Also different occupation groups have different premium weightings.
There is much to consider with Income Protection because of the many options and variables. Informed can help you make the right decisions and get the optimum cover for your circumstances

An improved product that offers a longer term solution than
ASU

Watch the video below which helps demonstrate the tax savings and benefits of Relevant Life plans.

  • ‘Informed made the whole process easy and we are enjoying our new home’