INCOME PROTECTION
FOR SUPERDADS
You cannot be a superdad without insurance.
Income Protection Insurance for Dads in the UK
Dads in the UK can compare income protection insurance through Daddy Insurance for a range of professions and vocations with various levels of risk. If you work a job where you run the risk of losing a portion of your income due to circumstances beyond your control, income protection insurance for dads should be thought about. You will feel more at ease regarding your income because of this.
Loss of income may worry you, especially if you have several recurring expenses. If you lose your income due to a problem at work, income protection insurance for dads helps financially while the issue is resolved. Your ability to pay your bills, your rent or mortgage, and other costs will be aided. When looking for a specialised policy like income protection insurance for dads, it can be difficult to find insurance brokers or organisations that can provide coverage in the UK for dads. To help you, Daddy Insurance is here!
We make getting income protection insurance as a dad straightforward so that you can potentially save time and money. Just give us your information, and we’ll match your needs with a policy that suits you. We’ll then get in touch with you and provide you with free quotes for income protection insurance. Then, as a parent, you may assess the prices and coverage options offered and select the one that best suits your needs as a dad.
What is Income Protection Insurance for Dads in the UK?
Income protection insurance for dads, often known as sick pay insurance or salary protection, is a type of personal insurance policy that essentially gives the insured person an income if they become unable to work because of an illness or injury. The sickness need not be physical because claims for income protection insurance frequently involve mental health difficulties.
Income protection insurance for dads is one of the most underutilised types of personal insurance for fathers. Nowadays, most of us regularly fail to protect our income while insuring our homes, automobiles, and even our cell phones.
What financial arrangements would you have made if an illness or accident forced you to stop working for a few months, a few years, or even longer to pay all your regular bills? Most people would deplete their savings within the first year, leaving them with no choice except to rely solely on government aid.
Most of the time, income protection insurance for dads is the only workable solution to long-term salary protection with enough financial support (other than saving).
Won’t the State Pay Me If I Am Unable to Work?
The Employment and Support Allowance (ESA), which pays only £77.00 per week (if you are over 25), and statutory sick pay, which pays £99.35 per week for up to 28 weeks, respectively, suggest that long-term incapacity would significantly lower living standards for most households. It is also worth noting that to get some state benefits, you must go through a strict capability assessment – so it is not guaranteed.
What Does Income Protection Insurance for Dads in the UK Cover?
Income protection insurance for dads covers your income if you get sick or hurt and can’t work because of it. It functions as salary protection so you can receive up to 70% of your pay to support living expenses while you’re recovering. Income protection insurance for dads can be customised to consider your employer’s sick pay as well as any savings or other sources of income you might be able to utilise if you are unable to work.
How Long Will Income Protection Insurance Cover My Wages for Dads in the UK?
The kind of income protection policy you select as a dad will determine how long the monthly benefit to replace your wages will continue to be paid to you. Your wages will be covered for a specified period under one of two categories of income protection policies, which we describe below.
Long-term income protection insurance pays you a regular income until you either:
- Recover and return to work
- Reach the end of your plan (usually your retirement age)
- Die
The most complete form of wage security you can get as a dad is long-term income protection insurance, which safeguards your income for the rest of your working life and enables you to file numerous claims throughout the policy duration. Your plan would continue paying out each month until you are healthy enough to go back to work or you reach the policy end date, which is frequently set at the age you intend to retire (tax-free if it is a personal policy, or under PAYE if taken out via your employer). Because of this, the plan may compensate your salary if you missed five years of work to recover from cancer.
As a father, you might also want to investigate the benefits of critical illness insurance, which would offer a lump sum payment in the event that you were diagnosed with one of the critical illnesses covered by the terms of the policy.
Because the claim period is capped and you can only get an income benefit for a certain amount of time, short-term income protection insurance is more affordable than other types of income protection insurance for dads. There are several payment periods available for short-term income protection insurance, including 1, 2, 3, and 5 years.
Therefore, as a dad, if you choose a 2-year short-term income protection policy and needed to make a claim, the pay-out will last up to 2 years; however, if you started working again before that time, you would no longer be eligible for the benefit.
But keep in mind that you only have two years to file one claim; this does not stop you from filing several claims. You can reapply for benefits if you become unable to work for at least 6 months after your last claim and get up to an additional 2 years of benefits (this time frame can vary).
As a cost-effective alternative, short-term income protection insurance for dads can be quite valuable because it covers you throughout the early stages of even a long-term illness, allowing you to try to make plans while relying on the income you are already receiving.
When Does an Income Protection Insurance Policy for Dads Pay Out?
When you are considered medically unable to work due to illness or accident as a dad and have missed work for the duration of the waiting period, also known as the deferred period, selected on your policy, income protection insurance for dads pays out. If you continue to receive money from your job, whether it be on a required or optional basis, your income protection insurance will not pay your benefit.
What is the Deferred Period?
The deferred period on an income protection insurance policy is the waiting time between your first day off work and the day your income protection insurance policy will start paying you an income. As you would expect, a short deferred period will make your income protection insurance policy more expensive than a long one. You can choose between waiting:
- A week
- 4 weeks
- 13 weeks
- 26 weeks
- 52 weeks
How To Choose the Best Deferred Period
You can determine the optimal deferred period for your income protection insurance by using the following information:
- How much of your savings you are willing to use and how long these will last?
- The amount and duration of sick pay your employer will pay.
- Any other sources of income you can rely on, such as a partner’s income or unearned income.
- State benefits that you can apply for or continue to get.
Knowing the above details will enable you to determine how long you can take off from work without getting behind on your bills. Ideally, you would select this duration for your deferment period.
Longer deferment periods will be less expensive than shorter ones, but it’s important to strike a balance between the cost of your income protection insurance and the likelihood that it will pay out when you need it.
Income protection insurance for dads is the form of personal insurance you are most likely to use out of all the options available. This is because it is much more likely that you will get sick or wounded throughout your working life and become unable to work than it is that you will pass away or get a serious illness.
Most of us consider life insurance for dads because we understand how terrible and tragic it would be for those we leave behind, but not nearly enough of us consider how an extended illness or unlucky accident could prevent us from working.
Some of the leading causes of claims on income protection insurance are:
- Back pain
- Mental health conditions
- Cancer
- Heart disease
A report from www.gov.uk confirms that only half of employers paid SSP only (54%), 28% paid above SSP, 13% did not provide any form of sick pay and 5% did not know.
