Income Protection - Red Sky Insurance

Income Protection

Income Protection

Income protection provides regular payments that replace part of your income if you’re unable to work due to illness or an accident.

We believe everyone should at least consider income protection, regardless of your circumstances. If you were out of work due to illness or injury, it can put a major strain on your day to day finances.

The 2 main reasons people are signed off work are depression and back problems, but income protection covers you for any issue that stops you from working unlike a specified condition like on a Critical Illness policy.

The amount of income you are allowed to claim will not replace the exact amount of money you were earning before you had to stop work. You can expect to receive about a half to two-thirds of your earnings before tax from your normal job.
Would you be entitled to any sick pay from your employer other than Statutory

Sick Pay (SSP)?
Do you know that this is less than £100 per week and will only last up to 28 weeks?

Income protection provides regular payments that replace part of your income if you’re unable to work due to illness or an accident.

You will receive payments to replace your income until retirement or you are able to return back to work. Your income protection insurance will cover most illnesses that leave you unable to work. With most policies you usually have to wait a minimum of four weeks after you stop work for payments to start. This is called the waiting period. Some waiting periods last up to two years.

The amount of income you are allowed to claim will not replace the exact amount of money you were earning before you had to stop work. You can expect to receive about a half to two-thirds of your earnings before tax from your normal job.  However, some people don’t require income protection insurance through work. some employers offer this as a benefit. Your employment contract, handbook or personnel department will have details if this is the case.

When it comes to taking out income insurance there are obstacles that can affect how much you receive such as

  • Your age- the older you are the more likely you are to pay as the risk of you getting ill increases.
  • Your health- if you’re in good health, you will pay les to insure yourself
  • Your job- if you do a job which involves high risk, you will pay more for cover
  • The waiting period- the longer you wait before you make a claim, the cheaper your premiums will be

Things To Consider

  • Pays out a regular monthly sum tax free
  • Helps pay your bills if you are unable to go to work due to illness or injury
  • Is available for self-employed, part time workers and contractors
  • Potentially could be paid out for the rest of your working life

We have over 15 years of experience.

Things go wrong. You’ll have questions. We understand people.

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    You may want to consider life insurance if you have a mortgage and you want to leave a debt free estate, or if there are people who rely on you financially, like your partner or children. Life insurance can also help cover the cost of funerals, or even if you want to leave your children something when you pass away.
    Life insurance can be set up to cover a specific length of time or even for the whole of your life. Various factors will determine the cost, such as age, health and level of cover. You can control who the money will be paid to and for how long you want the policy to be in place.
    Under current tax rules, pay-outs for critical illness, terminal illness and death claims are usually free of personal liability to pay income tax and capital gains tax. However, in some circumstances your pay-out may be subject to inheritance tax. You can normally help avoid this by putting your plan in trust. Bear in mind that the law relating to tax may change in the future. (For tax planning, we act as introducers only)
    When you choose to take out a life insurance policy with one of our providers, they pay us a commission. Our service is always fee-free.
    This depends on your individual circumstances as the amount of cover required is often different for each family. If you are married, have a large mortgage and four children then you are likely to need more cover than a single parent living in a rented flat with one child.
    Yes, you can have more than one life insurance policy.
    Many couples take out joint life insurance policies, due to the convenience and in order to save money, as it is cheaper than taking out policies on an individual basis. However, joint life insurance usually only pays out once, on the first death, leaving the surviving partner without cover.

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