Family Income Benefit
How would you pay the bills if you were too ill to work? Income Protection will protect your income to help enable you to pay all your bills, not just your mortgage.
This comes in two main forms: Level Term and Decreasing Term. Level Term will give you the same amount of cover throughout the life of the policy and pay out that amount if you make a claim. Decreasing Term will decrease over the term, usually to match your decreasing mortgage amount, and pay out the current amount when a claim is made.
Critical Illness Cover
This covers you and your family against the financial impact of a specified critical illness and loss of income through sickness. It pays out a lump sum should you be diagnosed with a serious illness. The type of illnesses covered varies depending on the provider and type of policy selected with typically up to 40 major illnesses listed. Critical illness cover is also available in Level Term and Decreasing term similar to life cover.
What is Income Protection?
Income Protection is an insurance policy that provides you with a regular tax-free income if you can’t work because of illness or disability. The benefit paid is up to a maximum percentage of your earnings – usually upto 60% of gross pre-disability earnings.
Policies pay out after you have been off work for a period of time known as the ‘deferred period’, and will continue to pay out until you can get back to work or until the end of the policy term, whichever is soonest.
You can choose a deferred period depending on how long you may be able to survive on any savings or how long you receive sick pay from your employer.