Income Protection

income-protection-insuranceWhat it does

Income Protection Insurance pays out a regular tax-free replacement income if you become unable to work because of illness, injury or unemployment. It could help you keep up with your mortgage repayments and other living costs until you are able to return to work.

Policies have a waiting period before they pay out, which begins when you become unable to work. The longer the period chosen, the lower your premium. It’s a good idea to find out what your employer would pay you, and what state benefits might be availiable so you can choose an appropriate waiting period.

Your adviser will consider these, along with any other insurance policies you have to help you decide. The premium you’ll pay will vary depending on your age, health and job, as well as the level of income you wish to protect.

Why you might need it

If you become ill or suffer an injury during your working life, an Income Protection policy can help protect against any possible loss of income, and could help you recover and return to work.

Mortgage Payment Protection Insurance

Also known as Accident, Sickness & Unemployment Insurance (ASU), Payment Protection Insurance can cover your mortgage or loan/credit repayments if you are unable to work due to illness, accident or unemployment.

Whilst it may appear similar to Income Protection Insurance, there are key differences, including a limit on the length of time a replacement income will be paid out for – often 12 months.
This payment protection insurance is optional. There are other providers of Payment Protection Insurance and other products designed to protect you against loss of income. For impartial information about insurance, please visit the website
A typical monthly cost for Paymentshield Mortgage Payment Protection Insurance is £5.23 for every £100 of monthly benefit. The monthly cost includes Insurance Premium Tax ‘IPT’ at the current rate of 6%. This cost is based on our full accident, sickness and unemployment option with 30 day back-to-day one cover, 12 months of benefit, no deferred premium payment period and protecting a monthly repayment of £620.