Have you ever analysed your contract of employment for the benefits your employer offers you? particularly for sickness cover.
Perhaps you are self employed and never given this much thought, afterall you have a business to run and the main priority is to generate income and profit.
If you have never considered what protection you have in place in the event of you being off work through sickness or disability, I encourage you to spend some time taking a look at your circumstances.
You will not be surprised to discover that their are choices available to you including, doing nothing about it.
Many insurance companies offer an income protection plan that will pay a monthly amount up to one or two years of cover. This is the cheapest form of protection available owing to the short time span that any income will be paid to you. This plan is fine if you knew that the reason you were going to be off work was for a short period of time. You would also have to wait for any excess period to lapse before any income would be paid to you, generally this is 30 or 60 days.
If you are looking for more security than this, A permanent Income protection plan will
be more suitable for you. You can choose the deferred period (The time that elapses before benefit is paid ) anything up to 1 year. The longer the deferred period the cheaper your premium will be.This allows for the plan to run in conjunction with any benefits your employer offers you.
You are not allowed to make a profit from an insurance policy so you are limited to the amount of cover that you are allowed on your policy. Generally this is 65% of your gross earnings. This allows for any deductions such as tax and national Insurance. The policy is paid free of any tax and national insurance.
The benefit is paid up to normal retirement age or until you are fit enough to return to work, whichever is the earliest. Naturally Insurance companies will be keen for you to get back to work and many offer support to you to help with this process.
Premiums are calulated by a persons age, occupation, amount of benefit required and if their are any pre-existing conditions.
Life as we know does not go in straight lines so if you have any doubt as to the cover you have in place already please check this out.
For more information or you wish to discuss further please contact:
Tel Number: 01708 640855
Authorised and regulated by the Financial Conduct Authority