Our income protection insurance policies.

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(income protection insurance)

We have several income protection insurance policies for UK residents, underwritten by different income protection insurance companies. Clicking the link will open the product in a new window so you can easily compare them. As we cannot provide online advice which income protection insurance policy would be most suitable, we have provided general selection criteria. If you want an individual quotation, discuss your needs or have any further queries as to which income protection insurance or mortgage protection  policy (or policies) we recommend please ring us on 0870 7456247.

• Our experience is that the differential between unemployment insurance only and unemployment accident and sickness insurance is reducing due to increases in unemployment insurance rates - especially where there is no element of mortgage protection insurance. You may wish, therefore to consider accident, sickness and unemployment cover combined rather than unemployment only cover.

• If you do have accident/ sickness cover at work then you should remember that:-

  • These benefits will cease should you lose your job AND

  • If you become ill whilst unemployed you will NOT be paid any benefits under an unemployment only insurance policy as one of the requirements must be that you can claim job-seekers allowance - for which purpose you must be fit.

Comparison between our policies

Comments

There are, of course, more reasons than just price to choose a policy: Other factors should be considered such as initial exclusion periods, whether a back to day one option is available, if there is a premium refund or if mortgage payments will be refunded even if there is an existing sick-pay scheme with your present company. 

We do not recommend unemployment only if you can afford combined cover as e.g. if you are off sick when claiming jobseekers allowance your benefit is stopped and if you then sign back on the claim may be invalidated. Also even if your company has a sickness package, if you are made redundant you would no longer qualify for it and if you were then sick you could not claim under the unemployment section of your policy. 

For widest cover you should also have a permanent health insurance policy with a 52 or 104 week deferred period. A Free quote can be obtained by phoning NEIFS (who are independent financial advisers) on 0191 4952395 quoting reference: Portwood

Most policies are available on-line.  You may request an income protection insurance prospectus/ proposal form if needed (or for further information/ advice).

We recommend you take out full cover with a mortgage protection insurance policy and as much as you can afford or qualify with the income protection insurance policy as, after all, even if your mortgage payments are covered you still have to pay other expenses. Please note that policies written as mortgage or loan protection with benefits paid to a third party will not count as income. This could be important if you could be eligible for income support after 6 months (not many people are) - as an income protection insurance policy would be classed as a source of income (according to our understanding of current legal position)

Information is provided on these policies to help you make a decision. We do not make a personal recommendation as to the suitability unless you contact us to discuss your demands and needs.

Why some policies may be excluded

• Initial exclusion period : This is the period from when the policy is taken out when unemployment claims are excluded - this is to prevent people taking out policies when they suspect that unemployment is imminent. 

   

  • GOODINCOMEPROTECTION - 120 days
    
  • GOODMORTGAGEPROTECTION 
    • New mortgages - NIL ( 3 months free cover on our Gold/Platinum, 6 months free on our Diamond contract) 
    • Existing Mortgages - 3 months (No premium is charged for these 3 months)
    • Transfers - 3 months (No premium is charged for these 3 months)
      

  • CLEVA PROTECTA

    • 30 days mortgage element

    • 90 days income protection insurance element

Excess  or deferred period : This is the period which is not covered from the date that you are first able to claim jobseekers allowance. This is NOT the same date that your employment ceases. If for example you were paid 3 months wages in lieu then the excess period  starts after the three months. 

• GOODINCOMEPROTECTION

  • NIL (Back to day one after 30 days)
    

• GOODMORTGAGEPROTECTION

  • NIL (Back to day one afgter 30 days)
    

• UKmortgagesafetynet

  • NIL (Back to day one after 30 days)
    
    

• Abetta Protecta

  • Nil - Cleva Protecta
    

Benefit Period : How many payments will be made?

• All on-line policies pay out for 12 months 

• We do have a 24-month benefit option - please call us for details

If you want more cover than a single income protection insurance policy can provide

You can in certain circumstances combine policies, providing that the total benefit you choose is less than the LOWEST percentage offered by a single company. Our general advice is that you take out as much mortgage payment protection insurance as are allowed and top it up with one of our income protection insurance policies.

You CAN have the following if you have no mortgage

1. Goodincomeprotection  (£1,000 per month cover) 

2. Cleva Protecta                  (£1,500 per month cover) (Suitable for high percentage cover)

3. DMS                                     (£1,000 per month)

If you HAVE a mortgage you CAN have the following (subject to some mortgage limits)

1. Goodmortgageprotection         (£1,500 per month cover) OR (this our recommended MP Unemployment product)

2. Cleva Protecta                             (£2,500 per month cover)  OR

3. DMS                                                (£1,500 per month)
   
   AND
   

4. Goodincomeprotection  (£1,000 per month cover) 

I want to insure a high percentage of my salary

You can't insure all your salary as the benefits are tax free and there must be some incentive for you to go back to work. Below are the products listed in percentage order.  The total cover you can choose as a percentage will depend on the lowest percentage product you select.

Product	Maximum cover	Maximum Percentage
Cleva Protecta	£2,500 (£1500 IP)	75
Goodmortgageprotection	£1,500 (MP + 25%)	65
Goodincomeprotection	£1,000	50
DMS	£1,500 (£1000 if IP only)	50

I want unemployment cover to start as soon as possible

NB - if underwriters form the reasonable opinion that you expected unemployment when you took out the policy they will refuse the claim

Below are the initial exclusion periods for unemployment cover.

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