Income Protection


Income protection is designed to offer financial support in the event of a serious injury or illness that results in the inability to work. If you were off work for the long term how would you and your family cope on a reduced income? How long would your employer pay you for if you were off work sick?

Key Mortgages can help you find Income protection which would ensure that if you couldn’t work for a significant period of time through illness or injury you would have the means to continue to pay your mortgage and bills without worrying about it.

Do I need Income Protection?

Where your finances are concerned it is reassuring to know you are protected and able to pay important bills while unable to work for a long period of time.

In some circumstances you may not need income protection. Some companies offer sick pay and employee benefits which are useful to fall back on and can give you an income for 12 months or more.

Short Term vs Long Term Income Protection

Short term income protection insurance policies usually only pay out for one or two years. They will cover a proportion of your income until you are well enough to work again. This can be very useful if you are a renter, a young person or currently earning a low income.

Most long term income protection policies have a minimum of 5 years, with some allowing you to claim more than once. Although long term protection comes at a higher cost, you will potentially be eligible for an increased payout and can be covered until you retire.

When can you claim income protection?

There is often a waiting period before income protection payments start, this will be pre-agreed when you put in an application. This is also known as a deferred period and can vary depending on your circumstances, however the longer the period, the lower your monthly premiums will be.

Once the deferred period has passed, your monthly payments will commence. This could be from the date when sick pay from your employer ends or when relying on personal savings is no longer sufficient.

Questions & Answers

Does income protection cover the self-employed?

Yes, income protection is available to both employed and self employed individuals. If you are self- employed this will be based on your pre-tax profits.

Will income protection cover mortgage repayments?

Mortgage payment protection is a form of income protection and can cover your monthly repayments in full while you are unable to.

Does income protection cover redundancy?

You will be able to insure yourself against involuntary redundancy by taking out a short term income protection policy. This can cover a proportion of your income and can take the pressure off while you look for another job.