Income Protection

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.

Why Risk Losing Everything?

Accident, Sickness &Unemployment

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.

Understanding the differences

The main differences between Income Protection and Accident, Sickness and Unemployment cover is:

Accident & Sickness Cover (with or without unemployment benefit)

  • Annually reviewable
  • Terms, availability is at the point of a claim
  • Assessment is at the point of a claim
  • Pay out benefits for 12 or 24 months
  • Normally a lower cost

Income Protection

  • Cover is fixed over a longer period of time
  • Benefits cannot be withdrawn regardless of the number of claims
  • There is no set limit to the length of a claim pay out (steps on return to work or policy expiry)
  • Assessment and underwriting is normally prior to inception
  • Policies offer certainty beforehand as to what is covered or excluded

Why Choose Us?

Our experienced advisors are impartial and will ensure that:

  • An extensive search is conducted from the market
  • The choice of cover reflects your individual needs and circumstances
  • Comprehensive underwriting is offered relating to any health issues
First Point Financial Management is a trading style of Lifetime Financial Management Ltd. Lifetime Financial Management is authorised and regulated by the Financial Conduct Authority, registered number 448415. Lifetime Financial Management Ltd is registered in England and Wales No. 3652194. Directors: P Merrigan, U Ozturk and C Last. Registered Office: 12-14 Upper Marlborough Road, St Albans, Herts AL1 3UR.
You can check the Financial Services Register by visiting the FCA's website, or by contacting the FCA on 0800 111 6768.