Income protection is a type of insurance that covers you if you are unable to work after being diagnosed with an illness or disability. You will receive payments through a regular income until you can return to work or retire.
Income protection covers you for many types of illnesses and disabilities, but the expectation is that you can return to work eventually. In some cases, you cannot return to work and in this case your insurance expires as soon as you reach retirement age. Income Protection can pay out more than once, however, there is a cap on how much you can receive which is based on your salary.
You must also provide your policy with a deferred period. This time is the length of time that it will take for your policy to start paying. First, you must use your savings, employee sick pay scheme or other income. Once the deferred period is over, the policy will begin to pay. The shorter your deferred policy, the higher the cost of your premiums.
There will be differences among most of the policies that are not the same, no two people are the same. As a mortgage broker in Middlesbrough, it is our job to recommend the right policy for you and determine what specifications you will need in place for your Income Protection insurance policy.
We have also dealt with customers who have never had to claim their insurance. Ultimately, it is more important to have something in place in case your circumstances change. If you want to find out if Income Protection would be beneficial for you and your personal situation, contact us for a free insurance review in Middlesbrough.
At Middlesbroughmoneyman, we can offer you a free Insurance review with one of our protection advisors in Middlesbrough, During your review our team will go through your personal and financial situation and see if Income Protection will be the best option for you. Your lifestyle, age and medical history will be factored into your Insurance review so that we can work out what policy you are looking for.
Income Protection can be costly, as it can pay out numerous times. If you have additional Insurances policies in place, it could be beneficial to work out the total costs and what you are covered for.
Upon taking out your policy, make sure you are aware of what it pays out for and the conditions that come with it. Your protection advisor in Middlesbrough will help with this.
Income protection insurance is designed so that it can pay you a monthly income if you happen to become unable to work for any reason. Previously known under the name of permanent health insurance (PHI), it can come in two variants, either with a monthly sum that pays out until you can work again, or a short-term version that only pays out for a limited period of time per claim.
If at any point you become unable to work due to illness or disability, you will receive lump sum payments from income protection insurance in Middlesbrough, as a new sort of income that allows you to cover things like your mortgage payments when you have become unable to earn the income to cover it. There may be a deferment period after a claim, wherein the provider will hold off in the event that your employer may offer you sick pay for a set duration, though this period length can be determined when you set up your policy. A shorter deferment period will typically mean higher costs.
You can already have Income Protection Insurance in place. Many employers offer this as a part of their employee benefits program and therefore will not need to take out a separate insurance policy. Your employment contract should contain details of all the insurance policies your company offers. If you already have another type of insurance policy, such as Critical Illness Insurance in Middlesbrough, you may not need Income Protection, you could already be covered. That being said, Critical Illness focuses on illnesses and disabilities that will prevent you from working again, so it could still be worth covering short-term illnesses with Income Protection. We find as an insurance and mortgage broker in Middlesbrough, that people may rather save money on Income Protection Insurance and use their savings instead. If you prefer to use your savings, you need to determine if you are able to cover your cost of living for the time you need to have. What happens if you had another emergency and needed more time off? Do you have more savings?
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Discuss with a dedicated protection advisor about possible relevant insurances you would like to take or that we can suggest to you. Your protection advisor in Middlesbrough will run through you health background with you, gathering some initial information.
We will build a tailored plan surrounding your current personal and financial circumstances, meeting your available monthly budget. Our team can search through 1000s of insurance products to find the most suitable one, to protect you and your family.
Once we have found the appropriate product for you and you are happy to proceed, we will submit your application to the provider. From time to time, the policy provider may come back to us for further information, before they will look at accepting the application.
If you took out your mortgage with us too, we will be back in touch with you at remortgage time. We will also take this time to review any policies you have in place. Circumstances change and the policies you took out at the start of your mortgage, may no longer be suitable for you at remortgage time.
We offer all of our customers a free, no-obligation protection review where we’ll have a look at any existing policies you have in place and assess their suitability.
We’ll then recommend which products, including critical illness and income protection that meet your needs. If required, we’ll then tailor the plan to match your available monthly budget.
Your Protection advisor in Middlesbrough will always be open and transparent with you. From start to finish they will work for you, trying to find you the best deal possible based on your personal and financial situation.
We have more than 20 years of experience in the sector with all kinds of types of policies. We have helped many customers take out Income Protection products in the past and we could help you next!
Our Mortgage and protection advisors in Middlesbrough want to make sure that you are protected and have the correct policy in place that will give you financial help when you need it most.
This type of Income Protection has you covered for surprises that come out of the blue. In life, you may face accidents, illnesses and redundancy. All of these factors will affect your income.
This protection pays off when you get sick, have an accident or are laid off. You will receive tax-free monthly lump sums that will compensate for your lost income. These payments will approximately last for 12 or 24 months. With this policy, you should return to work.
If the policy pays, you can spend money on everything you want.
This type of income protection covers existing monthly debt repayments such as loans, mortgages and credit cards that you cannot repay. It pays when you can't work.
When you take out the policy, you must specify how long you want the policy to pay. Usually, these types of policies are short-term.
If you are unable to work and you fail to keep up to date with your mortgage payments, this MPPI covers the costs. Rather than paying your whole monthly wage, it is usually used to cover your mortgage payments. Sometimes you can get a little more per month to cover bills and other small expenses.
As a general rule, your mortgage payment protection insurance will only pay for up to 12 months or when you can resume work. If you return to work, you will stop receiving the payments.