Income Protection

Why do I need Income Protection?

We don't usually think of our current income and future earnings as an asset. However, this is what pays for everything else - mortgage, bills, childrens' education, insurances and so on.

Income protection can cover up to 75% of your income in the event of an accident or serious illness if you are out of work for a lengthy period of time.

Income protection is another form of serious illness cover and is designed to provide people with income replacement in the event of serious illness or if you are unable to work for a specified period of time. This is particularly important for those who are self employed or people who are not entitled to a salary while off work. Tax relief is available on premiums paid subject to specified limits.

For further reading on the benefits of Income Protection have a read of some of our articles.

Wage Protector

Another similar budget-friendly option is Wage Protector. Wage Protector is an everyday essential that works when you cannot. It is designed specifically for workers in riskier jobs who are generally more expensive to insure, such as construction workers, electricians, plumbers, mechanical engineers and the self-employed. It has all the same features of the full income protection plan, with the only difference being that it will only pay out for a maximum of 24 months per claim.

The product is divided into two types of cover:

Transitional cover: This cover kicks in after the deferred period and pays you a replacement income for 24 months if you are unable to do your own job. This gives you an opportunity to get back on your feet or prepare for an alternative job. After this initial period, depending on your circumstances, full Disability Cover may apply.

Disability cover: This cover will apply if you are unable to return to any work due to significant illness or injury and suffer a loss of earnings as a result. You must pass a Functional Assessment Test to qualify for this cover. This is a simple, easy to understand set of physical and mental ability tests.

Comparison between income protection and wage protector

additional wage protector benefits