Have you heard of income protection?

We recently asked our followers on Linkedin and Facebook what they would do if they found themselves unable to work due to illness or injury. The results offered us a small insight into how some people view the importance of life insurance.

Why not use your insurance?

Only 15% of those who voted in our poll said they would use their insurance if they were to become ill or injured and unable to work as a result.*

From this data, we determined that those who didn’t choose the option ‘use my insurance’ may not have heard of income protection insurance before.

What can this type of policy do?

Income protection can help financially protect you if you’re signed off work, by a medical professional, due to any sickness or injury that’s included in your policy - these commonly include mental health issues, too. According to LV’s 2021 claims data, their top 5 reasons for claims on an income protection policy are:

  • Musculoskeletal (20% of claims)
  • Fractures (20% of claims)
  • Cancer (17% of claims)
  • Mental health issues (15% of claims)
  • COVID-19 (4% of claims)

The pay-out from this policy can act as a replacement for your monthly income by providing you with a little burst of money each month. This type of cover could be ideal for you if you’d prefer to receive small monthly payments instead of one large lump sum.

How much is income protection?

If you’ve heard of income protection before, you may have heard it can be expensive. However, this isn’t always the case as is the same with most types of life insurance, this cover is assessed on a case-by-case basis.

At Caspian Insurance, we believe life insurance should be uncomplicated and as simple as possible. To make getting a quick quote even easier, we have developed an income protection calculator which can give you an estimate of how much you could be paying in just 30 seconds! To try out our income protection calculator, click the button below to begin your life insurance journey today.

How do you decide on your pay-out amount?

The amount that you are covered for is typically based on a selected percentage of your monthly income and most providers will cover up to 50-70% of your monthly income.

Being able to tailor how much of your income you’d like to receive each month is one of the biggest advantages of having an income protection policy in place. At Caspian, our protection specialists can analyse your circumstances and insurance needs and help you calculate exactly how much of your monthly income you need to cover.

Is income protection tax deductible?

The pay-out that you could receive from an income protection policy will always be free of income tax. This ensures that if you were to make a valid claim on your income protection policy, you would receive the full amount that you decided upon when you initially arranged your policy.

If we’ve got you thinking that income protection could be the ideal life insurance policy for you, then click the button below to get a free income protection quote. What are you waiting for?

*15.49% of those we asked chose the option ‘use my insurance’

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