Compare Income Protection Insurance

Compare Income Protection Insurance

Illnesses, injuries or even unemployment are not things any person can predict. A person can suffer a serious injury through an accident or develop an illness that leaves them unable to return to work for prolonged periods at any given moment in their life. This is bad enough in itself, but potential financial hardship, through significantly reduced income, may add additional stress to the situation and slow recovery even further. This, however, can be prevented.

Income protection insurance is designed to cover a family’s financial needs in these circumstances. Options vary, and policies may cover illness, injury and unemployment, as is the case with most short-term income protection options; or cover illness and injury only, which applies mostly to the available long-term options.

Short-term variations usually pay either a lump sum or a monthly sum for a maximum period of two years. Payment protection insurance, or PPI, is designed specifically to pay off loans or mortgages in the event of illness or unemployment.

Long-term policies come in two main categories:

  • Category one will pay out if the insured individual can not return to their previous job role – payments are made monthly and will consist of around 50 per cent of the insured person’s usual gross earnings.
  • The second category will only pay out if the policyholder is unable to perform basic daily tasks.

In either case, the provider will usually expect the individual to return to work, either within their usual field of work or within any potentially suitable job as soon as possible. Often, providers will be actively involved in rehabilitation processes.

Because policies and premiums vary significantly between providers, it is essential to compare income protection deals thoroughly, comparison sites make this task considerably easier.

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