Like many people, you might struggle to get by if you had to take a month or more off work due to sickness or disability. Two in five households have less than £1,000 in savings and one in five have no savings at all, according to one study by Legal & General.
That’s why many people invest in Income Protection Insurance. It provides a regular income in conjunction with statutory sick pay to help minimise any financial shortfall and allow you to focus on your recovery.
Sick Pay Cover, as it’s more colloquially known, usually pays out between one-half and two-thirds of a person’s income.
A short call with one of Engage Wealth Management’s independent advisers will help establish whether Income Protection Insurance is the right option for you and, if so, how much cover you would need.
Arrange a free discovery call with our FCA-regulated income protection specialists to find out how we can help: [email protected] or 01273 076587
All insurance policies come with with hidden layers of complexity, and that’s also the case with Income Protection. However, a quick call with one of our advisers will quickly establish whether it’s the right policy for you, and if so, how to go about arranging it.
Be assured that we won’t bombard you with any sales spiel, you’ll just get sound advice given in your best interests. We won’t be offended if it turns out not to be the right option for you right now.
Stage 1: Mapping out your income & financial responsibilities
After the initial call, we would need to work out how much of your income would need replacing if injury or illness stopped you from working. Naturally, we’d need to look at all your financial obligations, such as mortgage payments and household bills.
There is some flexibility in how you can design an Income Protection policy. Together we’ll discuss the key areas which affect the true value of your policy and how much you pay.
As an example:
This stage is about building a structure that fits around your job type, life circumstances, and budget.
Once we’ve designed your plan, we’ll research the market to find the policy to match. We’ll consider an insurer’s claims history, their approach to underwriting and the additional benefits they might add on their plans.
You’ll receive a clear, personalised recommendation explaining why a specific policy suits your circumstances.
Income protection applications can be more detailed than other protection products. We guide you through:
Where possible, we conduct informal underwriting checks to minimise the risk of unexpected exclusions or premium increases.
Once you’re happy to proceed, we manage the full application process with the insurer, keeping you informed at every stage.
We liaise directly with underwriters to resolve queries quickly and ensure your cover is set up as promised.
If you ever need to claim, we act as your advocate. We can help you complete claim forms, ensure medical evidence is submitted correctly and monitor deferred period timelines.
Our role is to make the process as smooth and stress-free as possible while you focus on recovery.
Income Protection should evolve as your circumstances change. We recommend regular reviews, especially if your income increases, your employment situation changes or you take on new financial commitments
We’ll ensure your benefit level remains appropriate and adjust your policy where necessary.
"Oliver was incredibly knowledgeable on the variety of income protection available and really helped explain them without confusing me... Nothing could have gone smoother..."
Income Protection is a little simpler than most health-related insurance policies, as it covers almost any illness or injury that stops you from working – as long as it can be verified by a doctor. However, there are some important caveats.
Firstly, some policies do not cover pre-existing conditions. That means if you’ve suffered a particular health condition prior to taking out the policy, you will not receive a payout if it reoccurs or worsens.
However, there are Income Protection policies that do allow you to cover pre-existing conditions.
Secondly, most policies exclude any injuries or illnesses caused by deliberate self-inflicted harm, or due to alcohol or drugs abuse.
There are different ways of defining what it means to be unable to work.
If you take out Own Occupation Cover, it means you will receive a payout if you can no longer perform your specific role. So, even if you could in theory do another job, you’ll still get the payment.
If you take out Suited Occupation Cover, then you will get a payout if you can no longer do your specific job OR a similar occupation that suits your qualifications or skills.
Finally, if you take out Any Occupation Cover, you will only receive a payout if you can no longer do any job.
As well as being experienced in arranging Income Protection Insurance for clients, our advisers carry all the relevant industry qualifications, including the Diploma for Financial Advisers (DipFA) and Diploma in Financial Planning (DipPFS) from LIBF and the CII respectively. Our advisers also hold qualifications in mortgages, equity release, long-term care and Pension Transfer Specialist (PTS) qualifications.
“Prior to owning my own home I wanted to make sure that I had sufficient life insurance and income protection in place to financially protect my family should the worst happen…
“Oliver was incredibly knowledgeable on the variety of income protection available and really helped explain them without confusing me… Nothing could have gone smoother or been explained any clearer, really happy with the service I received.”
Engage Wealth Management featured in VouchedFor’s Top Rated Financial Adviser Guide, as published in The Times and The Telegraph. We’ve also featured in Sussex Business Times (SBT), Citywire, Financial Planner Life podcast and Fund Your Retirement podcast.
Are you looking to find affordable Income Protection Insurance? Contact our professional advisers at Engage Wealth Management via the contact form below.
Related policies: Critical Illness Insurance – Executive Income Protection – Life Insurance