If you were to think about a way to protect yourself and your family against the financial impact of illness what better way is there than a policy that guarantees to continue paying you an agreed monthly income until you are able to return to work.
Less accessible than life and critical illness insurance, due to mainstream banks and supermarkets not offering this type of cover, income protection continues to be massively under sold. Perceived as complex, income protection needs a particular level of experience and knowledge to advise on, which has resulted in a tendency within the industry to avoid recommending income protection cover even when it’s clearly better, suited than any other form of cover. Speak to an advisor at The Policy Store today to see how this policy can benefit you and your family.

If you would like to speak to one of our expert protection advisers about your policy options or simply want to compare the rates of competing insurers then we are here to help, feel free to contact us.

Income replacement policies (PHI) might appear similar but they can vary considerably, and it is essential to get the right cover for you which certainly does not mean simply getting the cheapest policy. There are a few key issues which are essential to selecting the right income protection policy and these are laid out below.
If you already have a policy speak to us so we can ensure that your policy provides you with the right level of cover and that the terms of your contract are met. As well as none disclosure, mis-sold products contribute towards the decline of payouts at claim stage.

Taking out an income protection policy with the own occupation definition of incapacity means that your plan would payout should you suffer an accident, sickness or injury that prevents you working in your own occupation.
For example, you could have a high pressured job that leads to high stress levels and means that you can no longer fulfill the duties of your own occupation. In this case the policy would pay out (as stress is a valid reason to claim on the majority of income protection plans) and therefore the insurer would not require you take a less stressful position. Naturally, this definition of incapacity provides the greatest level of income protection cover.  Although we would recommend this type of policy to our clients, it tends to be the most expensive, but insurance companies can be strict on the type of occupation that you do. For example jobs that have high levels of recorded stress related issues tend to have higher premiums or exclusions

Suited occupation.

An income protection plan using the suited occupation definition of incapacity does not offer the same degree of cover that a policy with the own occupation definition. Under this definition the insurance company may require you to work in an occupation for which they consider you to be suited to. The insurer’s determine what is a suited occupation based on your skills, training, qualifications and experience that you have in your current job and how their similarities compare.
For example, you maybe a fully qualified solicitor working as the director of a large or rapidly growing firm but due to stress you can no longer fulfill the duties of your position. Where as an own occupation income protection policy would be likely to payout, for a suited occupation the insurer may require you to take a less stressful position at the same firm or elsewhere with a suited occupation policy.

Any occupation.

An income protection policy using the any occupation definition of incapacity means that the insurer may ask you to undertake a job in any occupation for which you are medically capable.
For example, you may work as a surveyor where it is necessary to physically inspect various properties and therefore any condition that prevents you from walking would be eligible for a claim under an own occupation plan, but under an any occupation plan the insurer may ask you to take an office based position with your existing company or any other company. Thus, this definition mostly provides less earnings protection than a policy with an own or suited occupation incapacity definition.

Work tasks/activities of daily living.

If your income protection policy uses the work tasks or activities of daily living definition of incapacity provides the lowest level earnings protection. Under this definition the income protection policy would payout based on the ability of the policyholder to complete certain work or life tasks.
For example, common tasks include walking (can be from room to room without the aid of a walking stick), bending, lifting, climbing, seeing, reading and writing. It is usually the case that the policy would payout if two or more of these tasks cannot be completed without further risk to health. At The Policy Store we would not usually recommend this type of policy unless the client is not eligible for a policy under own or suited occupation definitions.
If you would like to speak to one of our expert protection advisers about your policy options or simply want to compare the rates of competing insurers then we are here to help, feel free to contact us.

It is possible to have a split benefit payment to accommodate someone who may have a work benefit that pays say 6 months full pay and 6 months half pay from their employer.  An income protection policy is designed to replace not increase your income and will not begin to payout until your wage is affected either partially or totally. It is therefore very important for people to take advice prior to making a decision.
An income protection policy is designed to replace lost income in the event of accident, sickness or disability and therefore will not make you financially better off as a result of being off work. This is an important factor in getting advice. The usual amount of cover that insurers offer is 50% of your gross salary before tax, for example if you earn £25,000 per year then your benefit would be £12,500 per year or £1042 per month. Some families have a joint income so you may not need the maximum level of cover so therefore you can reduce the cost of your policy by having less cover.
If you would like to speak to one of our expert income protection advisers about your policy options or simply want to compare the rates of competing insurers then we are here to help, feel free to contact us.

For an income protection policy, choosing an insurer who is favorable to your individual circumstances is the key to keeping the cost of your cover as low as possible. This could mean looking at an insurer who does not impose ratings or exclusions for example your occupation, your medical history or even hobbies and sports. Any quotes you receive on-line, from any insurer, are known as screen prices and offered on basic information and are mostly subject to change on application.
No single insurer is the best for all applicants because we are all individual and have different circumstances so it is essential to speak to an advisor to guarantee the right insurer is chosen that will offer you the best benefits and premiums.