INSURANCE DETAILS

Income Insurance


Income insurance is sometimes referred to as income protection insurance. As the name suggests, this product is focused around what you earn from work.

This type of policy is something that will pay out for those who are unable to work due to something like an injury or an illness (being made redundant is not usually covered by this type of policy). Typically these policies will pay out until retirement or return to work (or in a less cheery fashion, death).

So, with an income protection insurance policy, if you have an illness that prevents you from working you will still get some income from the policy if it pays out, and this would usually be in the range of 50-70% of what you earn. It is worth noting that there is usually an agreed period during which you can't claim, so it is only once this has passed that you will get paid out: the longer the period then the lower your premiums will be. This period is often in the region of one month up to a year.

Income protection is different to PPI which in contrast covers a particular debt, whereas income protection as just mentioned will cover a percentage of your income, tax-free.

There are various types of income protection insurance: these include something called ASU cover, which refers to accident, sickness and unemployment. More generally other policies can cover long-term and short-term income protection.

As for the cost of the policy, there are various factors that can affect this. They include things like the level of cover you want together with the particular job you do and factors such as your health.

Related Articles...

Pet Insurance
People love their pets - whether you are a cat lover or a dog lover, or prefer something like a rabbit, a guineapig, snakes, hamsters or indeed any animal that you can think of, then pet insurance...

Payment Protection Insurance
Until a few years ago, not many people would have heard of Payment Protection Insurance, commonly referred to as PPI. Now it is almost inescapable, with TV adverts and text messages bombarding...

Reinsurance
The concept of 'reinsurance' is quite an interesting one. It comes down to the same sort of logic as 'who will guard the guards?' - in this case who will insure the insurers. The answer is, other...

Flood Insurance
Flood insurance is a specific product under the umbrella of insurance and it covers - as the name suggests - losses that occur due to flooding. In many cases, this form of protection (flood...

Types of Car Insurance
There are various different types of car insurance product that are available in the UK. The minimum level of cover that is available to meet legal requirements is a product called third party...

Life Insurance
One of the most well-known types of insurance product is life insurance. And this does very much what it says on the tin - it insures against the life of a person. Thus, if the policy holder (the...

Crop Insurance
There are two main types of crop yield insurance available, which come under the category of types of agricultural insurance product. It is self-explanatory what crop insurance guards against -...

Saving Money on Car Insurance
Like with most types of insurance, the car insurance sector is extremely competitive. There are a lot of providers of this product, but also a lot of different factors that are taken into account to...

Property Insurance
Property insurance is a product that applies specifically to property, and has various different types of specific that are subsets of the general umbrella term 'property insurance'. Specific...

What Is Insurance?
What exactly is insurance? It sounds like a very basic concept, but it is important to know what insurance is, in order to work out why insurance is so essential to modern-day activities, and why...

 © © Insurance Details    |    Copyright and disclaimer    |    Insurance Details