About our Income Insurance

Policy Overview

Short term income protection insurance does not just cover your mortgage payments. It can be used to meet any financial outgoings should you be unable to due to accident, sickness or unemployment.

Unemployment cover will protect your income in case of redundancy or other involuntary unemployment, as well as should you need to leave your job to become a full time carer for a member of your immediate family.

Generally speaking, unemployment means you have no paid permanent or temporary work and have a Jobseekers Agreement with the Department for Work and Pensions in the UK. 

Accident and sickness protection will cover you if you are unable to work due to accident or illness. You can choose a policy that covers accident, sickness and unemployment.

Some insurers will cover you for extended periods of hospitalisation however normal pregnancy or childbirth is not classified as accident or sickness and is therefore not covered by this insurance.

Please check the policy wording for full details of restrictions.

Excess Periods

The excess period (or waiting period) is the number of days you are off work that you have to wait before your entitlement to benefit commences.

You will generally start to receive your benefit 31 days after the excess period has elapsed, for example, with a 60 day excess period, the first payment would be made after the 91st day of the claim, but paid back to the 60th day.

Unemployment policies do contain an initial exclusion period of 120 days which means that you will not be covered for unemployment that you are told about or that occurs within 120 days of the policy start date. This exclusion period may be waived if you are transferring cover from another policy.

Please refer to the policy wording for full description of excess periods or click here for further information.

Benefit

This is the amount that will be paid out each month in the event of a claim. A short term income protection policy can pay out up to £1,500 or 50% of your gross income per month, whichever is less.

You should consider your essential financial commitments each month when choosing your policy to ensure you will receive sufficient benefit to cover your vital expenses.

The sum insured under this policy and any other similar insurance policies must not exceed 50% of your monthly earned income before tax. If you exceed this limit your benefit will be reduced.

If you wish to specifically cover your mortgage payments, you may wish to consider mortgage payment protection which can cover your mortgage payments and up to 25% of related expenses.

Please remember: This is a short term protection policy and payments are only made up to a maximum of 12 months.

Monthly Cost

We calculate the cost of our payment protection insurance as a monthly cost for every £100 of monthly benefit. This number explains how much this insurance costs you each month for every £100 in benefit that you would receive each month if you made a successful claim for accident, sickness or unemployment.

For example, if the number is £5, this means that for every £5 that you pay as a monthly premium, you will get £100 for each full month that the claim lasts (after the waiting period on the policy). This number can be used to make comparisons with the cost of insurance from other providers. You should also compare the cover offered and the way in which the benefits are paid out.

There are other providers of short term income protection and other products designed to protect you against loss of income.

For impartial information about insurance, please visit the website at www.moneyadviceservice.org.uk

Eligibility

Please note: This checklist is provided as an overview. It is important that you read the eligibility you are presented with when completing an application.

    • You are aged between 18 and 64

Cover will automatically cease when you reach 65

    • You are living and working in the UK

It is a requirement that you have lived permanently in the UK for at least six months and in permanent employment, working at least 16 hours per week

    • You have worked for the last six months

You are only eligible for this cover if you have worked continuously for the past six months

    • You have no excluded medical conditions

You may not be covered for any pre-existing medical conditions or injuries as a result of an accident prior to the commencement of cover. Please check your policy wording.

    • Contract workers/Self Employed

If you require unemployment cover, you should read the appropriate section in the policy wording which is available throughout the application process.

    • Initial exclusion period

There is a 120 day initial exclusion period for unemployment or carer benefit. You will not be covered for unemployment that arises from any programme of job losses, any departmental or company restructure or merger with another company announced by your employer before the start date or within 120 days after the start date of your policy. This may be waived if you are transferring cover from another provider.

    • Maximum insured benefit

The sum insured under this policy and any other similar insurance policies must not exceed 50% of your monthly earned income before tax. If you exceed this limit benefit will be reduced.

Exclusions

Please note: there are exclusions and limitations that may apply to your policy. Please ensure you read the policy summary and policy wording documents fully.

  • Pre-Existing Medical Conditions

Please be aware that you may be unable to claim for any condition, injury, illness, disease, sickness or related condition and/or associated symptoms, whether specifically diagnosed or not which you knew about (or ought reasonably to have known about) at the start date or for which you sought or received advice, treatment or counselling from any doctor during the 12 months immediately before the start date

  • Self Employed

If you are self-employed and wish to claim unemployment benefit you will need to provide satisfactory evidence that you have ceased trading and are entirely without gainful employment, including the assisting, managing and/or the carrying on of any part of the day-to-day running of a business and are available for and actively seeking work. You must also be registered as unemployed with the Department for Work and Pensions and have signed a Jobseeker’s agreement within the United Kingdom.