Income Protection does not pay out if you’re made redundant.

Income Protection Policies will generally cover 50-70% of your income.

Income Protection Insurance provides you with a regular income if you’re unable to work due to illness or injury, typically covering a portion of your salary. 

Critical Illness Insurance pays out a lump sum if you’re diagnosed with a specified serious illness listed in the policy, regardless of whether it prevents you from working. 

Whilst income protection offers ongoing financial support during periods when you cannot work, critical illness insurance provides a lump sum payment to help cover financial needs that may arise.

Absolutely, Income Protection is important to everyone but especially for those that are self employed, contractors, freelancers or business  owners as in most cases you are heavily reliant on yourself.

In most cases yes. The insurer is likely to exclude that specific condition from your policy, so that it can’t be claimed against in the future but you will be still be covered for any other condition. Or, they may increase your premium, every Insurer is different and we can help find the best option.

You can choose, a common age is your planned retirement age as, because you aren’t working you no longer have an income to protect.

Rather than the policy paying out for the full term there will be a fixed claim period, usually one or two years although some Insurers offer a five year option.

Claiming on an insurance policy is something you hope you never have to do, but it’s the ultimate reason for the cover in the first place.

Paying claims is at the heart of what Insurers do. It is very important when initially applying for insurance that you answer all questions accurately and honestly as non-disclosure could affect the amount your policy will pay out, or invalidate it. Insurers publish annual claim statistics for transparency. See Income Protection Insurance claims statistics.

INCOME PROTECTION INSURANCE CLAIMS STATISTICS

Taken from Aviva’s 2024 Claims and Wellbeing Insight report

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