If you are unable to work then the prospect of a loss of income could affect you and your family. It is easy to assume that support will be available but for many it will not suffice. The prospect of receiving a nominal income, attending potentially unpleasant interviews and in depth medical testing could be a reality.
Some may be able to 'beg, borrow or steal' and you may be lucky enough to receive company sick pay for an agreed period of time. Regardless of your situation many will face serious problems if unable to work past 6 to 9 months.
If you cannot work through illness or injury, to ensure that you can continue life normally, Income Protection pays a monthly amount representing a percentage of your gross salary.
There are also policies that will protect against redundancy. Normally there is a deferred period for each policy which can be variable. A deferred period for Income Protection is the period of time that must elapse before the policy will pay out for a claim.
Accident, Sickness and Unemployment cover can be taken with or without unemployment cover. It will normally pay out if you cannot work through sickness or injury for a period of 12 months, or sometimes 24.
Generally, opposed to having a fixed policy over a long period of time, it is an annually reviewable policy where terms, price or availability can regularly vary. It is normally a very quick process to obtain a policy, although the assessment of your health and underwriting is usually only carried out should you wish to make a claim. For these reasons it is likely to be a more cost effective option than an Income Protection policy.
The main differences between Income Protection and Accident, Sickness and Unemployment cover is:
Accident & Sickness Cover (with or without unemployment benefit)
Income Protection
Our experienced advisors are impartial and will ensure that:
