Protect number one

Income protection covers you in case you are unable to work due to illness, disability or other similar circumstances. 

We want to give you total peace of mind. With Income Protection, you’ll receive regular payments to help cover your mortgage, bills, credit commitments and other outgoings. 

How does it work?

Naturally, you can’t expect to receive the exact amount you would usually earn. However, most insurers typically pay out a tax-free benefit of between 50-65% of your income depending on the level of cover you choose.

Of course, you may also receive statutory sick pay from your employer. We will factor this in as well as your other circumstances before we reach out to insurers.

You will need to decide on a pre-agreed ‘waiting’ period known as a deferred period before payments will start. The longer the deferred period, the lower your monthly premiums. The policy covers you until you can return to work or retire.

When do you need it?

Relying on Statutory Sick Pay? While SSP may be enough to support you in the short term, it is unlikely they will continue to pay you after one year of illness or that the amount paid is enough to support your lifestyle or family.

The same applies to sick pay received from your employer. Although many employers do offer this, it’s not indefinite and it’s vital you consider what you’d do after this stops.

If your savings cannot cover essential costs such as mortgage or rent, utility bills etc, income protection could help relieve the pressure.

How much will it cost?

Your premiums will vary, depending on several factors:

  • your age
  • your health (smoker vs non-smoker)
  • your occupation
  • the % of income you would like to cover
  • your agreed ‘deferred’ period
  • the range of illness/injury covered

Choose from a reviewable premium which the insurer may increase over time or a guaranteed premium that will remain fixed for the duration of the policy. You can also choose from level cover whereby the agreed payment amount remains the same throughout the policy or increasing cover which will increase yearly in line with RPI (retail price index) meaning your policy benefit increases in line with the cost of living. 

Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is £495 depending on your circumstances.

For insurance business we offer products from a choice of insurers.

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    Questions?

    FAQ

    Got a question about income protection?

    Lendese have hundreds of policy solutions. With our expert advice and guidance on which type of protection is right for you, we can make sure you every angle is covered.

     

    SSP will pay a maximum of £99.35 per week for a maximum of 28 weeks. With people’s average spending a month being a lot higher than this, an income protection policy can ensure there are no shortfalls and that you do not fall into debt. Also, an income protection policy is usually set for several years meaning that you don’t worry about ‘what next’ once 28 weeks has passed.

    As standard, providers will cover up to 65% of your annual salary which is then broken down into a monthly benefit. You don’t have to have this amount of cover and can decide on a set benefit amount.

    A lot of people only consider the short term when considering income protection however both the short term and long term must be considered. Savings are a good way of covering in the short term however if you were to be signed off for several years or even until retirement, would your savings be enough? With the right income protection policy tailored around your circumstances, you can ensure that you have ample cover at a comfortable cost which may even allow you to keep your savings for use elsewhere.

    Usually, an employer will provide a set period of sick pay which can vary from 3, 6, 12 months or even longer. Not many however offer indefinite cover. By taking out an income protection policy that ties in with your sick pay and starts once the sick pay stops, you can ensure that at no point, you left without adequate cover.

    Critical illness differs from income protection in a couple of ways. The first difference is that a critical illness policy has a set list of illnesses covered whereas an income protection policy does not. With that in mind, rather than having to meet set criteria, an income protection policy purely requires a policyholder to be signed off work by a doctor for it to kick in. The second difference is that a critical illness policy pays a lump sum rather than a monthly benefit. On that basis, a standard critical illness policy comes to an end in the event of a claim whereas an income protection policy will continue to pay when required and can be claimed more than once over the term of the cover.

    A lot of people think they can rely on savings and although this may be a short term fix, it’s unlikely it will be a long term one.

    If you were to be signed off for a long period or until retirement, would family and/or friends be able to support you whilst supporting their own lives? The answer is unlikely.

    With the right income protection policy tailored around your circumstances, you can ensure that you have ample cover at a comfortable cost and know that you don’t have to rely on others.

    Yes, you can. Providers offer income protection for both employed and self-employed applicants. Your profession will be factored in when providers make their decision however this is the case for all applicants.

    In short, yes you can. Pre-existing medical conditions will always be factored into a providers decision and may lead to increased premiums or specific policy exclusions however just having a pre-existing medical condition does automatically rule you out from being able to get an income protection policy.

    If you are in receipt of employed or self employed income then the answer is likely now. No matter how small or large your outgoings are, the chances are that should your income stop, this will have an effect on you, your life and even your loved ones.

    Smoking may well cause your policy to be more expensive compared to someone who does not smoke however that’s not guaranteed. There are many other factors that will also be considered such as medical conditions, previous health, BMI and so on.