Worried what would happen to your family if you lost your job next year? Even if you can get a new job quickly will the sick-pay be the same?
Post-Brexit, and now with Trump in the White House, we have the added uncertainty whether there will be the same demand for our job as there has been in recent years.
Accident, Sickness and Unemployment Protection is the best possible, and most important, income protection you can have. It will ensure that you will still have an income should you be unable to work through illness, injury or involuntary redundancy.
So you may not be able to avoid an accident, illness or the loss of your job but you can remove the fear of an incident and the potentially enormous impact it has on your family should it happen.
Accident, Sickness and Unemployment Protection is the best possible, and most important, income protection you can have.
As an example, if you are 30, a non-smoker and in good health, then a premium of around £41 per month would provide you with a monthly income of £1,000 for up to 12 months should you be unable to work due to an accident, sickness or involuntary redundancy.
There are many providers for this type of protection and each has their own specialisations or exclusions which means policies taken out online or without independent advice are often not paid out.
Knowing you’ve chosen the right protection solution is only achieved if you have received professional advice. There are many Protection providers and each has their own specialisations and exclusions which means policies taken out online or without independent advice are often not paid out.
Lightblue Online was set up to provide specialist help to people unsure how to go about choosing from the many Protection products available. For example, the cheaper options provide a replacement income only if you can’t do any job – rather being unable to perform the one you are trained for. So it’s important to make sure that if you’re buying a policy it’s the right one for you.
Our specialists will help you to navigate all the options to find the cover that is right for you and your family at an affordable rate.
Accident, Sickness and Unemployment Options
As with all things the more options you choose the higher the price. Income is no different and different insurers load the options differently. It is therefore important to determine what you need and what you would like so we can find the best Income Protection policy available to you in the market place. Below are some of those options.
The number of weeks from when a policy starts before you can start to claim for unemployment. This can vary from Insurer to insurer but is typically 60 days.
The number of weeks or months you can survive on, for example, your savings or company sick pay before you need to receive the income from the insurer. The longer the period the cheaper the cost.
Typically 12 or 24 months or for longer-term policies, if you are unable to return to work, up to your selected retirement age. The shorter the period the cheaper the cost.
Level or Indexed
‘Level’ means that the amount you receive will remain the same throughout the time you have the insurance regardless of whether your income or expenditure increases. Alternatively, the amount you receive can increase each year in line with inflation using either the retail price index or the consumer price index. With some insurers, this can be declined on an annual basis.
Guaranteed premiums would suggest that what you pay stays the same throughout the policy term unless you increase the required income amount. For some policies this is true, you pay the same amount month after month until the policy ends. For others its guaranteed to increase based on a rate table which means the price you pay in the future for each £1 is guaranteed to go up each year at the rate set out in the guaranteed rate table sent with your policy. You can, therefore, calculate what your premiums will be in the future..
If your premium is not guaranteed then the premiums can change each year due to age or changes to your health. Reviewable policies usually start cheaper than guaranteed policies, but they may end up being more expensive.
Own or Any Occupation
When the ‘Own Occupation’ definition of incapacity is chosen the policy can pay out for any medical condition that prevents you from working in your own specific job role. When ‘Any’ is used the insurer will only pay you if you are unable to perform any occupation. ‘Own’ is more expensive than ‘Any’.
Waiver of Premium
If Waiver of Premium is selected then when you begin receiving an income from the insurance policy the premiums no longer need to be paid until you return to work or your selected pay-out period is reached.
Back to Work Benefit
Receive a percentage of your income if, on returning to work, the illness or injury you claimed for restricts your duties and you earn less. Some insurers will also pay a top-up should you start a different occupation that pays less.