Income Protection - Pure Protect Bristol

What is Income Protection

Each year 1,000,000 people in the UK find themselves unable to work due to a serious illness or injury (ABI 2017). Without some form of insurance, many people find themselves in financial trouble at a time when they are least able to cope with it. For most people, a sudden and total loss of earnings for any length of time would create a great deal of stress and hardship.

Income Protection Insurance is an insurance policy designed to help you if you can’t work because you’re ill or injured. It ensures you continue to receive a regular, tax free income until you retire or able to return to work.

The typical income you would receive is 60% of your gross earnings in the year before your incapacity. This is to prevent you becoming financially better off by receiving the policy benefit rather than working!

Income Protection plans come with, what is called, a “deferred period”. This is the length of time between becoming incapacitated and receiving the benefit. The longer the deferred period, the less the premium would be. You would generally set payments to start after any sick pay ends.

You are able to claim as many times as you need to within the policy term. If you go back to work but then “relapse” with the same condition, the deferred period would be waived.