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IP

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IP short for income protection

While the specifics of each income protection cover vary according to the individual policy holder, here’s an overview of what you can expect from your income protection cover in terms of salary benefits, the length of benefits once a claim has been filed, and the effect of deferral periods and premium payments on the income protection policy.

• Salary Benefits

Should the unthinkable happen, you can file a claim with us to start receiving your benefits. We cover up to 65 percent of your gross monthly income up to £25,000, and 50 percent of any additional gross income of up to £180,000 per year. We can also structure our policy to provide you with benefits of up to £1,500 per month based on your gross monthly income.

• Average Length of Benefits and Deferred Periods

Income protection cover works by using what is known as a “deferred period.” A deferred period starts on the first day you are unemployed or unable to work due to sickness or injury, and ends on the first day you start receiving your policy benefits. Some of our policy holders prefer to have a longer deferral period. In each case, you decide how long you want this period to be. In general, if you choose a lengthier deferral period, your monthly premium payments will be lower.

Deferred periods are set in terms of weeks. Most of our policy holders choose a deferred period of between 4 and 26 weeks, although we offer a variety of different plans with deferred periods of up to 114 consecutive weeks.

Once you file a claim and your deferred period ends, you will continue to receive benefits for a set number of weeks depending on the pre-determined length of your policy. Many of our policy holders choose a plan that bridges the gap between their current age and the time that their retirement package is set to begin. This could be the equivalent of a few dozen or a few hundred weeks. As long as you continue to make premium payments, your income protection policy will continue to provide benefits throughout that time.

When you sign-up for the policy, please let us know your preferred duration for the income protection cover. It should be noted that an income protection policy does not have a cash-out value, but rather is designed to aid policy holders in a specific time of need.