Personal Income Protection Plan
Income protection insurance could help you meet your bills if you can't work through illness, injury or disability. Both short term cover and long term income protection plans are available – Chase Templeton can help you find the best solution for your needs.
The benefits of a long term income protection plan
Have thought how you and your family might cope if you were unable to work through illness or injury? Could you keep up your mortgage payments? Cover ever-increasing utility bills? Simply put food on the table?
Worryingly, research from independent consumer champion Which? suggests fewer than one in ten of us use income protection insurance to guard ourselves, our families and our homes from financial insecurity. With the majority of employers not providing group income protection, and already low welfare benefits being further squeezed, income protection is a wise, even essential, purchase. After all, none of us know what might be around the corner, and if you lost your income, you could also lose so much more.
Income protection insurance provides valuable reassurance during the good times, and invaluable financial support should you fall on hard times. While you’re off work it pays a percentage of your usual income, usually between 50-60%, so that you can keep your head above water.
Long term disability insurance
Long term income protection can also provide insurance for temporary or permanent disabilities, providing you with a monthly income to cover your loss of earnings during this difficult time. Speak to your Chase Templeton adviser if you are interested in disability cover as part of your policy.
Most policies offer long term income protection, covering you until your retirement, death or return to work, although some providers also offer fixed term schemes which typically pay out for between one to five years. Some will also offer additional benefits, such as a nightly hospital allowance, and GP and counselling helplines.
We use providers including LV, Friends Life, Aviva, PruProtect, Bright Grey, L&G, Zurich to name but a few.
Short term income protection from Accident, Sickness and Unemployment
Unlike long term income protection insurance, accident, sickness and unemployment (ASU) policies are designed to offer shorter term financial relief. They provide replacement tax-free income, typically of between 50-65% of your earnings but as high as 90%, for a fixed term of up to 12-24 months.
As one of the UK’s leading private health insurance and protection specialists, Chase Templeton enjoys strong partnerships with the leading providers of ASU policies. These include British Friendly Society, Exeter Family Friendly Society and MMS Keystone. Each offers different levels of cover, giving you the flexibility to choose the amount of replacement income you would receive and the length of time it would be paid. This in turn means you can help determine the premium you pay.
In determining whether accident, sickness and unemployment insurance is the right form of income protection insurance for you then you should start by thinking about how, and for how long you would survive financially if you’re unable to work through illness or injury. An accident can, of course, happen to anybody - but think how your lifestyle may present risk. Your age, personal and family health history, interests and hobbies could all be relevant.
Choosing an income protection plan
- If you lost your income, how long would it take for you to default on key bills such as your mortgage or rent, utility payments and loans? Accident, sickness and unemployment insurance provides short term income protection to help you keep on top of your finances.
- If you were off work for more than two years, how would you cope? If this worries you, you might want to consider long term income protection insurance. This is more expensive but will pay a percentage of your income until you return to work, retire or die.
- Are you worried about being made redundant? If so then it’s important to make sure you check your chosen policy covers you, as different insurers have varying definitions of redundancy.
Your personal Chase Templeton income protection adviser will be pleased to discuss the options open to you with reference to your specific situation and budget. Having assessed your circumstances they will then direct you to the most appropriate solution, and provide ongoing support and advice should your circumstances change or you need to make a claim.
About Chase Templeton
Our impressive trading pedigree has seen Chase Templeton named Best Group PMI Intermediary 2014, confirming us as one of the UK's leading health insurance specialist.
Having expertly served our clients since 2002 we currently manage over 35,000 policies and are trusted by thousands of customers across the UK.
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