Income protection policies are designed to cover a wide range of circumstances that can prevent an individual from working, including accidents, illnesses, and losing job. Depending on the policy, income protection may cover short-term absences, such as those caused by a broken bone or minor illness, or long-term absences, such as those caused by a chronic condition or serious injury.
The amount of income provided by an income protection policy is typically based on a percentage of the policyholder’s gross income, with policies typically covering up to 70% of their earnings. The policyholder can choose the level of cover they require, and the premiums they pay will reflect the level of cover selected.
Income protection policies are generally available to anyone working, regardless of their age or health status. However, some policies may have restrictions on pre-existing medical conditions or may require a medical examination before the policy is approved.
Policies typically have a waiting period before they pay out, which begins when you become unable to work. The longer the period chosen, the lower your premium.
Accident protection policies are designed to payout a lumpsum to individuals or families when people experience injury or death due to an accident to meet the needs of medical bills, loss of income, and other expenses related to the accident.
The amount of coverage provided by an accident protection policy can vary depending on the policy and the level of coverage selected. Some policies may provide a set amount of coverage, while others may provide coverage based on the severity of the accident or the amount of medical bills incurred.
Accident protection policies are generally available to anyone, regardless of their age or health status. However, some policies may have restrictions on pre-existing medical conditions or may require a medical examination before coverage is approved.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.