Income protection insurance is an income you receive if you are not able to work because of sickness or disability, you will keep getting paid until you can return to work or when you return. Sometimes it is also known as permanent health insurance.
The income you will be able to claim is not the exact salary. You can expect a payment of half or two third of the original payment. Some amount is given to the state for the benefits that you may receive and this money is usually tax free.
You can claim this immediately. You can to wait for some time. In some cases, it is four weeks and sometimes it can even extend to two years. This is because you are able to request for a sick pay from your boss at work or you can get a statutory sick pay for about 28 weeks after you stopped working.
If you are looking to get illness insurance, you can go through other options as well like critical illness insurance. Once you have compared them you can select one. If you are looking for income protection insurance you can get the Income Protection Quotes here.
Check if you need it
Before you think about taking an income protection insurance you need to check if you are already receiving one from work. There are some employers who offer this benefit. You can get details about this if you go through your contract or any handbook that your workplace will have.
Check if you have savings that you can use, but the thing is with savings you may not have enough to cover for your ill period and if in case an emergency arises where you would have to use all your savings you will not be left with anything to cover your illness.
Compare different illness insurance
There is other illness insurance you can think about like critical illness insurance. Although this can be a cheaper option the range of illness it covers is small and the duration is short too. If you are not sure of what to get you can consult an independent financial adviser.
Check the terms and conditions
Before you go ahead with the procedure you need to read all the terms and conditions and make sure it meets whatever you want. Read through these carefully and then sign.
See if there are exclusions
Insurance may not always cover all types. In some cases, the conditions which you or your family has had before may not be covered. If there are certain rules regarding attachment of your family medical history the insurer must explain it clearly.
How long do you have to wait?
Some insurance policies require you to wait up to 4 weeks after you stop working to give you the payment. This is called the waiting period and this can even last for a longer time.
What you must tell your insurer
Make sure to give your full details, your family medical history to the insurer.