An Income Protection plan can pay a regular monthly benefit, replacing income lost in the event of injury or illness. This can help you meet your financial commitments without relying solely on state benefits.

Ask yourself how long your money would last if you couldn’t work. And then speak to an adviser at Aspect8 to see how we can help.

Income protection may provide the following:

• Cover based on a percentage of your earnings, usually capped at a 60% maximum.
• Tax-free benefits.
• Policies that pay out from the date you claim until you return to work or retire.
• Cover can start on day one or you can defer it for up to 12 months.
• Your income is assessed at the time you claim, not when you buy the policy.
• Your premiums stay the same for the entire policy.
• You can choose to increase your protection to cover inflation.

What is an own occupation policy?

We would often recommend “own occupation” policies, which pay out if you can’t continue with your specific role, rather than any relevant job. Own occupation policies generally don’t involve arbitrary tests like whether you can walk or hold a pen.

What is a deferred policy?

A deferred policy commences payments after the first 3 or 6 months instead of straight away, leaving you responsible for your own finances for the first few months that you can’t work. This is a far less expensive option than buying cover from day one, which is rarely necessary.

Deferring means your premiums are more affordable, but you’ll need to consider how long you’d like to defer your policy for. Ideally, you’ll have 3 to 6 months’ worth of living expenses saved, which you can use to cover the deferred period.

Who is income protection suitable for?

Income protection isn’t just for salaried employees – it’s vital if you’re self-employed or a small business owner, when being unable to work will have a financial impact from day one. We look for providers who assess your income when you claim, rather than when you take the policy out, and those who use a 12-month average, rather than a 3-year average. Some insurance companies will even take earnings from previous employment into account, so no matter how unique your employment situation is, we know how to find a policy to suit you.