Income Protection

The majority of clients would be unable to maintain their current lifestyle if they suffered a long term illness, Income Protection is designed to protect your most valuable asset, YOU, against the loss of income in exchange for a monthly premium. This type of insurance will replace your income if you are unable to work in your own occupation. The plan will pay a monthly income until you return to work / to the end of your plan or in the event of your premature death. We will help you to:
  • Decide on the amount you should protect income. The maximum is 50-65% of your gross earnings. The benefit is paid tax free, however, ideally, you should protect your monthly outgoings, i.e your mortgage, any loans you may have, your liabilities, utilities, food and lifestyle costs.
  • The deferment period. This can be set from day 1 of incapacity up to 24 months. The longer deferred period you choose, the cheaper your premium will be. However, it is important that you have the means to cover your outgoings during the deferred period.
  • Term. Typically, clients insure their income until their intended retirement age, normally age 60 – 65.
  • Own occupation. This is essential in a skilled professional job such as Dentistry. Some providers offer a suited occupation to education and training whilst others offer activities of daily living (whereby if you are able to carry out tasks such as bathing and dressing without assistance, you would not be able to claim).
  • Indexation of benefits. This ensures your benefits are not eroded by inflation. £100.00 in 1996 is approximately £173.00 today. If you are under the age of 40, by the time you retire the benefit may be worth 50% less in spending power.
  • Guaranteed premiums. This means that the premium will not increase when you become older. Some providers offer reviewable premiums which appear to be good value when you are younger, however typically when you become 40+ the premiums increase based on the insurers claims experience.