Income Protection Insurance

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Income Protection Insurance, also sometimes known as Permanent Health insurance, is a type of insurance policy which pays out in regular instalments when you’re unable to work as a result of an injury or illness resulting in a loss of earnings. This type of cover can replace part of your income, typically up to 70% of your gross salary, during the period of your recovery, and will pay out until you are ready to begin work again, the end of the policy, your retirement, or your death, whichever occurs first.
This type of policy is designed for anyone who is working, including those who are self employed.
Your employer is legally obliged to provide sick pay for up to 28 weeks, so you may wish to consider ongoing protection.  An Income Protection Benefit policy can be adapted to fit in with any existing protection you might have.
There are two types of income protection available:

  • Long term income protection – This is the most common type of cover. It pays an income benefit for the entire length of the policy (typically to retirement age) if you are unable to return to work due to illness or injury.

  • Short term income protection – This is the second type of income protection and is designed to cover you for a limited time period, typically one or two years. This is much cheaper than long term cover, though you are of course exposed to the risk of still being unable to work at the end of the pay-out period.

If you’re considering taking out income protection insurance or you want to check if you’re eligible, it can be helpful to speak to a trained professional with access to the whole market. At Apex Financial Consultants we can help you to find the right policy for you and your family should you decide that you need it.