Income Protection Insurance: Cover Flexibility
The flexibility of i:protect Lifestyle Income Protection Insurance enables you to tailor your policy to uour individual requirements. There are just three simple steps…
1. How much money would you need? List out your outgoings and those important bills that you must pay each month – see example below.
|Example of Monthly Outgoings – essential bills that must be paid|
|Share of Rent or Car Loan||£340|
|Total minimum payments on all Credit Cards||£80|
|Phone and broadband||£40|
|Home or Car Insurance||£40|
|Total for an average month||£800|
This Income Protection Insurance is a very cost effective way of securing enough money to cover the essential monthly bills. Looking at this example, you would still need some savings to fall back on to pay for shopping, your mobile, fares, petrol etc. However, if you were out of work for any length of time, this policy would make your savinghs last much longer. This is a cheap way to avoid falling into serious debt.
2. What do you need to cover? Do you want Accident and Sickness cover or Accident, Sickness and Unemployment cover?
Even though currently there are high levels of unemployment, i:protect still receive over 40% of claims from customers in respect of accident and sickness. After a major injury or illness, it takes people much longer to get back to work than they expect. Different people will have substantially different rates of recovery. Further, a relapse in health due to being driven back to work by financial worries, can be avoided by taking advantage of this cover to ensure you are fully fit before re-entering the workplace.
There are many reasons why someone may find themselves out of work for a long period. The biggest claims paid by i:protect insurance have been to individuals who were unable to work following a protracted illness. For this reason i:protect do not offer just redundancy cover alone as it would leave our customers financially vulnerable.
3. Take advantage of i:protect flexibile excess periods.
What is an Excess Period? It is the period of time after the date you were signed off as unable to work/unemployed that you are prepared to wait before your benefits start – see examples to illustrate this near the the bottom of this page.
If you can answer the three questions above you are ready to get a quote – please click the ‘Get a Quote’ button and try some quotes using different excess period before making your mind up.
Income Protection – examples
When do you want your benefits to start, here are two examples to consider…
a) If you were off sick your contract of employment may give you 3 months on fiull pay and a further 3 months on half pay. You may wish to have your accident and sickness benefits start when you are no longer on full pay by selecting a 90 day excess.
b) If you were made redundant, your final wage, including any redundancy payment, might only be sufficient to meet your outgoings for six months. Therefore it would be sensible to start your unemployment benefits after 180 days. This would save a huge amount of premium and would give you a full year of benefits being after that 180 day excess.
Take advantage of i:protect Lifestyle Income Protection Insurance and choose the excess period most suitable for your needs. If you need to be paid as soon as possible select a nil excess which is called ”back to day one cover”
You chose. You can select the most suitable excess period for each of your benefits: 180 days, 90 days, 60 days, 30 days and nil (back to day one). This means you can select one excess period for Accident and Sickness benefits and another for Unemployment benefits.Not only will benefits kick in when you need them, you can also save a great deal of premium by carefully matching the excess periods to your personal requirements.
Income Protection excess periods – what do they mean
Excess periods in detail:
A 0 Day Excess means you have to be off work for 30 days before you can register your claim but all payments will be backdated to day 1.
A 30 Day Excess means you have to be off work for 60 days before you can register your claim but all payments will be backdated to day 30.
A 60 Day Excess means you have to be off work for 90 days before you can register your claim but all payments will be backdated to day 60.