Income Protection

How will you cope financially if you were off sick for a period of time from work?
Let us explore your options.

Income Protection

Income Protection can help you maintain yours and your family’s standard of living by providing a monthly income should illness or injury prevent you from working.  It does not allow you to make a profit out of your misfortune therefore only pays a portion of your salary; the maximum amount of income you can replace through insurance is broadly the after-tax earnings you have lost less an adjustment for state benefits you can claim. This is usually translated into a maximum of 65% of your before-tax earnings. 

Income Protection Essex
Income Protection Suffolk

 Buying Income Protection could be confusing and difficult to understand, it is always best to seek advice from a suitably qualified Professional.  Not all medical conditions are covered and the terms under which you can claim can vary.  At Shire Financial Services Limited we aim to provide a comprehensive service and always try to explain things as clearly as possible.  Your financial security is important to us.

There are a few choices you will need to make when taking this type of insurance.  You will need to know and also think about a few things: 

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How much sickness benefit would you receive from your employer?

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How long would your savings last if you were without your salary?

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What changes could you make to your lifestyle and what financial sacrifices are you prepared to make if you were off from work?

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Would you be able to meet your mortgage payment and other living costs without your income?

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How long would you like to receive payments for if you were off from work?

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If you have children could you afford additional childcare fees if you were unable to look after your children full-time?

There are a few choices you will need to make when taking this type of insurance.  You will need to know and also think about a few things:

Income Protection is usually offered as either a ‘Short-term or Budget’ policy or ‘Long-term or Full’ policy.  What’s the difference?

Short-term / Budget policy

This type pf policy would pay you a monthly amount for a period of usually 12 or 24 months whilst you are unable to work.  Even if you are still unfit for work after this time, the policy will stop making payments to you.

Long-term / Full policy

Offering a longer payment period, this policy would usually pay you the monthly insured amount until the age of retirement or a pre-determined age providing you are certified as unfit for work.

 

What is the Deferred Period?

The period between when you become unable to work and when you want the insurance policy to start paying out is known as the deferred period, the longer the deferred period the lower your premium, however you will still need to meet your financial commitments during this period.

Why do I need Income Protection?

The likelihood of being unable to work due to an illness or accidental injury is greater than you may think:

According to the Association of British Insurers (ABI), (Source: The Money Advice Service March 2019) one million workers a year find themselves unable to work due to a serious illness or injury.

At February 2019 there were 6.8 million working age claimants of which 2.1 million claimed an Incapacity Benefit such as ESA. (Source: DWP benefits statistical summary August 2019).

I Can Rely on State Benefits Though…Can't I?

Often people are surprised to learn that the Statutory Sick Pay rate from the Government is only £94.25 per week; this is paid for the first 28 weeks of incapacity (Tax year 2019/2020).  For most people this would cause financial stress especially if you were without savings. 

What Are The Common Causes Of Claiming?
  1. Mental illness (such as stress or depression).
  2. Musculoskeletal issues (problems of the muscles and bones, including back pain).
  3. Heart disease.
  4. Cancer.
WHAT IMPACTS THE PRICE OF MONTHLY PREMIUMS?

As with all insurances, there are various factors that could influence the cost of your premiums and which terms are offered.  Generally these are:

  • Age
  • Job
  • Smoking status
  • What percentage of income you’d like to cover
  • How long you are willing to wait before the policy pays out
  • The range of illnesses and injuries covered
  • Your current health, your weight, your family medical history

Still Not Sure?

We can help you by searching insurance products based on a fair and personal analysis for the most suitable Defaqto 5 star rated cover for your circumstances.  Contact Us to find out more.

JUST SOME OF THE INSURERS WE WORK WITH

Registered Address

Shire Financial Services Ltd
Surrey House, 41 High Street,
Newmarket Suffolk CB8 8NA
England.

Registered Company No.

05904006
Country of Registration: England

Opening Hours

Mon-Fri: 9:30am to 5:30pm
Sat and Evenings: By Appointment
Sun: Closed

Fee Structure

We receive commission from the mortgage lender. Also, depending on mortgage type and complexity we usually charge a fee between £200-500 and for Expatriate mortgages, a fee of £800. Fees are payable upon Mortgage Offer.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

SHIRE FINANCIAL SERVICES LIMITED IS AN APPOINTED REPRESENTATIVE OF SESAME LIMITED WHICH IS AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

COMMERCIAL MORTGAGES, INCLUDING BUSINESS BUY TO LET, ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY. FOR COMMERCIAL MORTGAGES WE ACT AS INTRODUCERS ONLY.

THE FCA DOES NOT REGULATE ESTATE AGENTS, SURVEYS AND SOME FORMS OF BUY TO LET MORTGAGES.

FOR ESTATE AGENTS AND SURVEYS, WE ACT AS INTRODUCERS ONLY.

THE FCA DOES NOT REGULATE SOLICITORS AND WE ACT AS INTRODUCERS ONLY.

Equity release refers to home reversion plans and lifetime mortgages. To understand the features and risks ask for a personalised illustration. 

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