Income Protection Insurance in UK

Income protection insurance is very much essential for all the working people as it protects them from being in financial crisis in case they cannot go to work due to some injury or illness. The income protection insurance is also gaining popularity in United Kingdom and many companies have come with such policies. Income protection insurance is essential as it protects you from an unexpected situation in which you cannot go to work due to a medical condition. This provides you with peace of mind in case of a financial crisis. The income protection insurance provides you with monthly payments and in other words is a replacement for your salary.

Many of the companies in UK provide you with coverage for your income in case an injury, illness, accident or involuntary unemployment stops you from going to work. The benefit paid depends mainly on the cover that you have chosen for yourself. Most of the companies provide benefit up to 50% to 75% of the taxable income prom your primary employment. The benefit mostly is limited to a maximum of 2000 pounds monthly and the benefit is mostly available for a period of 12 to 24 months.

Some of the insurance companies in UK also continue the benefit even if you go back to work but with reduced salary. The payments currently in UK are tax free which may change in near future. Unless the policy is canceled by the insurer or the insured the cover will last as long as the insured continues to pay the premiums but only till his retirement. To be eligible for the benefit the insured must be aged between 18 and 69 at the time of making the claim. Before you go for claim, make sure you go through all the terms of the cover and make sure that none of the exclusions apply to you to get the benefit payable on time and without any deduction.

Income protection insurance is definitely a boon for all those working as it helps us cope with any unexpected situation in which the salary stops as you are unable to go to work. However, the tough time is finding the right policy to cover your income. It is a good idea to consult a financial advisor who will suggest you the right policy for your income coverage after assessing your financial conditions.