5 reasons why you can benefit from income protection

The primary reason why Income protection is important is that secures you financially when you are temporarily or permanently off work. You can apply for this type of cover when you work in a full time or part-time employment or when you are self-employed. It is one of the most suitable types of cover when you lost your source of income as a result of an injury or illness. There are several packages of income protection you may want to consider but the most important reasons why you can benefit from such cover are;

It allows you Keep up with Your Monthly Bills

Staying out of work for too long can affect your capability to meet up with your monthly repayments. When you are injured or ill, the last thing you want to keep in mind is debt, and since it can be stressful to think about how you will manage your daily expenses, getting an Income protection cover will be of great help. Consider huge debts such as mortgage payments, credit card debts and your car loan. Most income protection packages will support up to 75% of your regular income, which can go a long way to meet up with your daily spending and quicken your path to recovery.

It Secures Yourself and Your Family Financially

It is not easy to raise a family when you are battling an illness or injury. The situation becomes worse if you and your spouse become ill or injured and unable to work at the same time to provide for your children. With an Income protection cover, you and your spouse wouldn’t have to worry about the implications of the loss of income, you and your family can have some rest, knowing fully well that you are covered under Income protection.

One other benefit of this cover is that you can change your income protection at any time. You can either increase or decrease the insurance package at any time. You need to keep in mind also that any change you make is subjected to approval.

Income Protection Helps You Focus on Recovery

Many people at some point in time will require recovery from some illnesses or injuries sustained from accidents. Without the right financial protection, it can be practically impossible to put all your efforts into such recovery. Having to worry about money is very stressful, not to mention those additional concerns about when you will return to work and earn to take care of your personal and family expenses.

Having Income protection coverage will ensure that your income doesn’t cease during your trying times. This means you can focus all your energy on recovering from your health challenges.

You Can Apply for It at the age of 18 and it is affordable

One of the reasons you can benefit from income protection in the UK is that you can apply for the cover within the ages of 18 and 59. Though you will have to show proof that you work for at least 20 hours a week in a role that you have spent at least 12 months working in.

Generally, Income protection is affordable in the UK, though the cost of the package will depend largely on your age, medical conditions and the length of coverage.  You need to keep in mind that premiums payable on income protection are tax-deductible, however, the income you get from the protection will also be taxed.

Keep in mind also that your occupation type may affect your premium rate. Your gender, as well as your smoking status at the time of application, may also affect the premium payable.

A Wide Range of Illnesses and Disabilities are Covered

Though not all sicknesses or disability types are covered, you will still get Income protection even if you indulge in some lifestyle. For instance, if you smoke, you can still apply for income protection in the UK.  The following conditions are not covered under the income protection;

  • Mental disorder and related illness.
  • Self-inflicted or intentional act resulting in injuries.
  • Attempted suicide.
  • Consumption of drugs, unless the drugs are recommended by a medical practitioner and the drugs are not in connection with treatment for drug abuse, or related issue.
  • The consumption of intoxicating liquor over a legal limit in the UK.
  • Normal pregnancy, including related issues such as miscarriages, giving birth, morning sickness and all other pregnancy-related issues.
  • War – whether it is declared or not. War-like activity or injuries caused when you take part in a civil commotion or riot.
  • Engagement in criminal activities.

You don’t have to pay premiums on income protection while you are unable to work, the insurance company will reimburse you in arrears in accordance with your monthly premiums until you are no longer ill or disabled, and until the maximum benefit, the period is reached.


Unlike some insurance covers, income protection cover does not require that you take blood and other medical tests before you apply for it. Though, you will be asked some health and lifestyle questions over the phone, to evaluate your qualification for income protection coverage. Similarly, you don’t need to provide proof of your income as evidence during the application stage, but you need to provide satisfactory financial evidence when filing a claim for disability or illness income. You need to also show proof that you are not working in any occupation during the waiting period to qualify for the benefits. In many cases, the insurance provider will have to evaluate your illness and disability and if your recovery will be very fast or the situation is exaggerated, you may not qualify for the benefits.

In some cases, your employer may have to prove that your situation will prevent you from coming to work, to qualify for the income protection benefits. You may want to compare different quotes from different service providers or speak to a financial expert before choosing the ideal income protection package for your needs.

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