Income Protection Insurance

The Need for Income Protection Insurance

B. Portwood & Co Ltd offer income protection insurance to protect you as a UK resident cover against accident, sickness or unemployment.. 

• With many people becoming unemployed or facing redundancy their is a need for protection. It is sensible for you to ensure that there is income protection insurance in place so you can pay your monthly bills
• Your home is your most valuable asset. Protection is also needed in case you have an accident or become sick and cannot work. In this case there is a need for mortgage protection insurance to provide cover for your payments.
• The protection may include your mortgage but we can extend insurance to cover other monthly bills - the  insurance company can provide substantially more protection.
• The protection limits are set by your salary. Mortgage protection limits are usually mortgage payments + 25%. Amount above this can be protected using income protection.
• The protection will be restricted in the length of payments, but you can protect against accident and sickness, unemployment or both accident sickness and unemployment.

• If you happen to be self employed, income insurance is difficult because many companies do not cover this sort of occupation. We do.
• The income protection may not be offered if you are in a family firm insurance companies do not wish to insure people who have control over their employment for mortgage protection - nevertheless we can advise that we can. Unemployment is defined as 'cessation of trade'.
• There are greater risks attached to income protection for some occupations
  • Accident and sickness cover is usually offered at the same rate no matter what occupation you are in.
  • Income protection rates are higher with some companies for high-risk occupations (It, Financial Services, Tourism and the like)
  • We have difficulties if you are behind in your payments.

Companies providing income protection insurance, will normally only do under certain restrictions.

• If you want income protection you must not be expecting to become redundant/ unemployed.
• There are age restrictions - you must be over 18 and under 61 - but the cover may last till you are 65
• You must be in full-time employment (16+ hours). You may be self employed but unemployment cover is then 'cessation of trade'

• Cover will be restricted - for the first 120 days unemployment will be excluded.
• Benefits will be paid for 12 months as a maximum
• To continue cover you must pay the premium when you are unemployed.

End of information on income protection insurance: call 01388 607105 for any queries