Insurance

Top tips on buying Income Protection Insurance

Income protection is an insurance policy that will protect you against accident, sickness or unemployment that prevents you from working. 

Compare to other insurance policies, income protection can affordable and you can protect yourself for as little as £10 a month. 

Income protection can pay you a tax-free monthly benefit should you be unable to work due to illness or injury or if you have been redundant involuntarily. 

Income Protection Insurance Top Tips 

When you are considering income protection insurance there are a few things to look out to ensure you get the best deal that is right for you. 

Recent figures have shown that most leading income protection insurers have a higher than 90% successful claim rate. 

1)      Long or short term 

There are two main types of income protection and you can choose either a long or short term policy. A long term policy can cover you up until you are fit or healthy enough or work, retirement age of death. 

Short term policies will cover you up to a period of 12 months from the time you are unable to work. You should think about how long you would want to be covered for. Short term policies are more affordable but long term policies offer more benefits in the event of a claim. 

2)      Choose your waiting period 

There is period of time after you cannot work until you are paid your monthly benefit known as the ‘deferred period’. By choosing your preferred waiting period you can reduce your monthly premiums. 

For example, if you know you will able to support yourself financially for three months without working you may consider a deferred period of three months. You can choose a deferred period up to a year if you wish. 

3)      Decide how much benefit you want 

Insurers will let you decide how much of monthly benefit you want to be paid in the event of a successful claim. 

You can choose to cover as much as 70% of your gross income in your protection policy but if you feel you could pay your mortgage, utility bills and maintain your lifestyle for less then choose a lower percentage. By choosing a lower amount to be covered you can reduce your monthly premiums. 

4)      Compare quotes online now 

Looking for the right policy can be time-consuming and there are many different income protection insurance providers on the market.  You may find it easier to compare income protection quotes online now from the leading insurance providers at ActiveQuote.com. 

ActiveQuote.com is the UK’s leading comparison site for income protection, health insurance and life insurance. To compare quotes visit www.activequote.com or call us on 0800 862 0373.

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