Insurance pays out when you're
unable to work from injury or illness,
until retirement or death.
What is Income Protection Insurance?
Income protection insurance, also sometimes known as permanent health insurance, is a type of insurance policy which pays out in regular installments when you’re unable to work as a result of an injury or illness. Mortgage income protection insurance typically pays out until retirement or death, or until you can return to work. Income protection cover is different from critical illness cover – critical illness insurance pays a lump sum if you become ill, rather than regular payments.
If you’re considering taking out income protection insurance or you want to check if you’re eligible, it can be helpful to speak to a trained professional with access to the whole market.
Town & Country Mortgage Services have an insurance team that specialises in finding the best insurance deal for your needs. We offer We offer free advice for our mortgage and protection advice that’s comprehensive so you can make the right choice.
Life is unpredictable but income protection insurance can help to keep you and your family protected when the worst happens. This type of insurance will pay you a regular income each month, both for employed people and those who run their own business or are self-employed. Mortgage income protection can provide you with peace of mind that your bills will still get paid if you are unable to work.
If you need a more cost-effective alternative, there are short-term income protection policies which last for a couple of years and cost less.
How Much Does Income Protection Cost?
The cost of mortgage income protection insurance can vary from person to person, as well as between different insurance companies. There are various factors to consider when choosing income protection and your health, age, whether you smoke and what level of cover you need will all impact the cost.
The type of job you do will also affect the cost of your income protection, as some jobs are more risk-prone than others. Those with riskier careers may find that they pay higher premiums than those with less risky jobs.
The pay-outs from income protection cover are typically based on a percentage of your earnings, with between 50% to 70% being the standard range. An insurer may pay a higher percentage of one portion of your salary, such as the first £50,000 and then a lower percentage on the rest. Income protection pay-outs are free from income tax.
There are several types of income protection, with both long and short-term options available. Short-term income protection is an insurance plan which covers just a set period of time, such as two years, whereas long-term income protection will typically cover you until you’re able to return to work, retire or pass away.
A mortgage is a big investment and for most people, it’s the largest bill they have each month. If you find yourself in a position where you’re unable to work for a long period of time, having this bill covered each month can be a huge weight off your mind.
Speak to one of our award-winning mortgage advisors
When you’re assessing insurers and different income protection policies, you need to ensure that your policy is provided by a reputable and reliable company. It’s important to consider the cost of the monthly premiums to make sure you can comfortably afford them, as well as the length of the policy.
But it’s also important to not simply choose the cheapest policy there is. The best coverage for you and your needs may not be the most budget-friendly, but it will ensure you’ll have the required level of protection. For this reason, it’s a good idea to get several quotes or speak to a broker who can help you navigate this complex sector and find the right policy for your circumstances.
Choosing the right insurance policy can be daunting, particularly if you’re buying your first home and are unsure what type of policy best suits your needs. Town & Country Mortgage Services can help – we’re an award-winning broker who can offer comprehensive advice to help you make the right decision.
Town & Country Mortgage Services have a separate team within the business who specialise exclusively with insurance. They have access to the whole market and can assess your situation to find you the best deal possible.
If you’d like more information about income protection or you’d like to talk to one of our experts, contact us today and we’ll be happy to help.