INCOME PROTECTION
FOR SUPERDADS
You cannot be a superdad without insurance.
Best Income Protection Insurance UK
It may seem difficult to find the best income protection insurance as a dad in the UK to fit your demands, but it doesn’t have to be.
If you’re unable to work due to illness or injury, income protection is a type of insurance that can pay out up to 70% of your typical wages to help with essential expenses.
You may want to take the following factors into account while looking for the best income protection insurance to match your unique needs:
- What you must include.
- Your financial capacity.
- Your line of work.
Whether or not your employer provides you with any sick time (if so, how much and how long for)
You could ask a professional, like Daddy Insurance, for assistance in getting income protection insurance quotes from our panel of insurance providers.
This will enable you to see all of your alternatives and pick the income protection insurance plan that is suitable for you and your particular situation.
What is the Best Income Protection Insurance?
The best income protection insurance will be the policy that offers the greatest level of cover (to allow you to cover essential costs) while being at an affordable price.
The best income protection can help you to cover:
- Rent or mortgage payments.
- Household bills and utilities.
- Travel expenses.
- Childcare costs.
- Daily living costs.
- Monthly debt or loan payments.
- Leisure costs.
When taking out an income protection insurance policy in the UK, there are a variety of policy terms that can be chosen to best meet your needs.
Important policy terms you should be aware of include:
- Benefit amount: This is how much will be paid out to you. This can be up to 70% of your usual annual earnings and will be paid out to you in monthly (tax-free) payments.
- Payment period: This is how long you’ll receive income protection payments for. Depending on your needs you could opt for a short-term payment period (maximum of 1 – 2 years) or a long-term payment period (could last up until retirement).
- Policy term: This is how long your cover will last. You can choose a policy length which best meets your needs. However, there’s often an upper age limit by which your cover must end (this can be from 60 – 70 depending on the provider).
- Definition of incapacity: This refers to what makes you eligible to make a claim. Most policies come with an ‘own occupation’ definition which will allow you to make a claim if you can’t you do your job. But it’s also possible to have a ‘suited tasks’ definition or an ‘any occupation’ definition.
- Deferred period: This is the period of time which must pass in order for your payments to begin. You must still be unable to work after this time for your payments to commence. Common deferred periods are 4, 8, 13, 26 and 52 weeks but this can vary between providers.
- Premium type: This is how you pay for your cover. Income protection premiums can be guaranteed (remain the same), reviewable (can change over time due to different criteria) or age-banded (will increase each year as you get older).
Comparing income protection insurance quotes is essential in ensuring you secure the best income protection. Daddy Insurance help you to do this free of charge.
Best Long-Term Income Protection Insurance
You may receive payments through long-term income protection insurance up until the time you retire.
This may be especially helpful if you were to become ill or be unable to work once more (as payments can be made for the rest of your working life, allowing you to still receive an income).
The best long-term income protection is therefore likely to be a cost-effective insurance that provides the appropriate level of coverage for the longest policy period.
Full income protection or “full term” are other names for long-term income security.
To get the best long-term income protection insurance plan, compare rates with Daddy Insurance.
Best Short-Term Income Protection Insurance
The payout duration for short-term income protection insurance is limited.
The most typical payout time for short-term income protection insurance is one to two years, however some providers also offer short-term payment periods of up to five years.
The term “short-term” income protection insurance simply denotes the duration of your payouts.
Your policy term could be as long as a long-term income protection insurance, but you would only receive payments for a much shorter period of time.
Yet, this can give you the option to submit several claims during the course of the policy’s term.
To find the solution that best suits your needs, compare Daddy Insurance’s short- and long-term income protection insurance options.
What’s the Best Income Protection Insurance for Self-Employed
The policy that covers you for the longest amount of time will provide the best income protection for self-employed workers.
This is so you can rest easy knowing you’re protected for the duration of your working career.
In the event of a long-term illness or injury, being unable to work could result in a devastating loss of income since self-employed individuals do not receive sick pay from their employers.
Payments from income protection insurance may be able to keep you and your company afloat.
An executive income protection policy can be something you want to think about if you work for yourself as a contractor or operate your own limited company.
Due to the fact that the premiums are paid for by the business and can be deducted as an expense, this method of obtaining insurance may be tax-efficient.
How To Get The Best Income Protection Insurance – Top Tips
Below you will find Daddy Insurance’s top tips on securing the best income protection insurance to meet your needs:
- Always check the policy terms and conditions – This is where you will find all the key details that will help you establish whether a policy meets your requirements or not. Take your time to read through and understand what’s being offered.
- Be open and honest – Giving false details or withholding information on your application can lead to a pay-out being denied when you and your family need it the most. Providers are used to securing cover for people from all walks of life, so always be upfront.
- Calculate how much cover you need – While the amount of cover you can take out will be based on your annual income, knowing how much you need to cover essential costs will allow you to know if this amount will be sufficient.
- Review your cover regularly – Life is ever changing and cover from years ago may not suit you now. Thankfully, most policies will allow you to make changes to your policy if your circumstances change. Alternatively, you may wish to seek new cover.
- Compare quotes – Comparing quotes will allow you to find out about all your available options, ensuring you secure the right policy at the best available price. Why not let Daddy Insurance help you to do this?
Income Protection Insurance FAQs
Although you’re more likely to get sick than die while you’re working, income protection can be quite helpful in protecting your earnings and ensuring you can afford your monthly obligations.
Not everyone has access to an employer’s generous sick leave policy or emergency reserves.
Income protection can be especially helpful for persons who:
- Are self-employed.
- Get partial sick pay.
- Lack of savings.
- have a family to maintain or have financial obligations.
Why not get in contact with Daddy Insurance? Consulting an expert will help you determine whether income protection is the best option for you.
Income protection can protect up to 70% of your usual income.
The percentage can vary between providers, although most mainstream providers will pay out between 50% – 70% of your usual earnings.
The exact amount that’s paid out to you will ultimately depend on how much you earn.
One isn’t necessarily better than the other, as each policy will cover you for different circumstances.
Income protection can pay out to you during your working life to protect your income. Whereas life insurance can pay out to your loved ones upon your passing.
If it’s within your budget, it can be possible to take out both a life insurance policy and an income protection policy simultaneously.
Why not read our complete income protection vs life insurance guide for more information?
No, income protection insurance is intended to compensate you for missed wages while you are unable to work.
Hence, you won’t be able to make a claim if you’re still able to earn the protected income (or any other income).
Only if you meet the policy’s definition of incapacity will you be eligible to make a claim on an income protection insurance, and payments won’t start until after your deferred term has expired and you’re still unable to work.
Hence, if you are able to work, you will not be eligible to file a claim or receive compensation.
Compare Income Protection Insurance Quotes in the UK
Daddy Insurance can help you get free quotes from our panel of insurance providers in the UK.
This way you can see all your available options and can choose the provider who offers the right policy at the best available price.
Quotes through Daddy Insurance are fee-free, personalised and without obligation.
