Income protection

When you’re ill or injured and can’t work, income protection is there to support you. Talk to us today to protect your income.

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What is income protection?

Accidents and illnesses happen. They are facts of life. But what would happen if you were unable to work? Your employer’s sick pay may only cover you for a few months at best.

If you are self-employed, will you be able to support yourself, if you are unable to work? So what happens to the bills, the mortgage – and everything else that your income used to cover?

With income protection you don’t have to worry. Not only does it supplement your income, it also provides support to get you back to work – and your life back to normal.

What does it cover?

Income protection is an insurance policy designed to help you if you can’t work because you’re ill or injured. It ensures you continue to receive a regular income until you retire or are able to return to work.

  • Covers illness, accident and injury – Receive a monthly benefit to replace your salary if you are unable to work due to illness, accident or injury;

  • Provides support to help you get life back to normal, as soon as possible – or until you retire, pass away or the end of the policy term – whichever is sooner;
  • There’s often a waiting period before the payments start – you generally set payments to start after your sick pay ends, or after any other insurance stops covering you. The longer you wait, the lower the monthly premiums;

  • Short or long term plans available – Short term plans can pay out for up to 2 years, whilst long term plans can continue to pay out right up to your planned retirement age;

  • Pays up to 70% of your gross salary – You can cover up to 70% of your pre-tax salary, depending on the policy and insurer.

Talk to us today to protect your income

How much does it cost?

The question you should be asking; “Can I afford to pay my bills if I was too ill to work?”. The cost of a policy will vary based on a number of factors, including:

  • Age;

  • Job;

  • Whether you smoke or have previously smoked;

  • The percentage of income you’d like to cover;

  • The waiting period before the policy pays out;

  • The range of illnesses and injuries covered;

  • Health (your current health, your weight, your family medical history).

Woman making notes

Benefits to income protection

Sick pay alone might not cover your outgoings.

With statutory sick pay at £95.85 a week* it’s very unlikely you’ll be able to pay for your mortgage / rent let alone food, mobile phone bill, the internet and other monthly payments you have.

Income protection policies are tax free as long as the money you use to pay the policy premiums originates from a taxable income. This can be an enormous help to you if who find yourself in unexpected circumstances. If the premiums are paid with money that does not originate from taxable income, the benefits from the policy may be subject to taxation.

The best way to determine how a policy will affect your particular financial situation is to get in touch with one of our specialists.

How to get in touch

  • Simply complete the form here;

  • Check your inbox for a copy of our brochure;

  • Give one of our insurance specialists a call on 01564 791 117 with any questions you may have after reading the brochure.

It all starts with a chat

Could you afford to continue your current lifestyle?

Have you really ever thought about your current and future financial situation? What would you do if your income stopped due to illness, accident or injury?

Household spend**

Average weekly spend

Recreation and culture (holidays, pets, TV streaming services, cinema) etc £76.90
Travel and transport £80.20
Housing, fuel and power (not including rent or mortgage) £79.40
Other expenditure items (rent, mortgage, council tax) £77.20
Food and non-alcoholic drinks £61.90
Restaurants and hotels £51.30
Misc goods and services £45.50
Household goods and services £40.80
Clothing and footwear £24.40
Telephone and internet £10
Alcoholic drinks £9.10
Prescriptions and other medical services £4.20
Education £5.00
Average weekly total spend £565.90

Could you afford your lifestyle if you were too ill or injured to work?

Get in touch today to see how we can help

See what our customers say

“Paul has been fantastic with my mortgage and insurance. As this is the first time I have bought a house, it has been so amazing to have his support. He has explained the mortgage for me and helped with everything. I will definitely use them again and recommend to my friends.”
Amy
“I am very happy with the service I got from TRM Direct for my re-mortgage. I found a new lender for 1% less than my previous deal. Although the process was very protracted, mainly because of the solicitors the lender uses, Roisin was very helpful. She returned my calls promptly and chased things up for me. Thanks very much to Roisin and everyone at TRM Direct. I have already recommended them to other people.”
Sharrion
“Roisin was very conscientious and friendly to speak to. I received a very thorough, professional service and everything was explained to me in full. I am very happy with everything and would highly recommend to TRM Direct Ltd to anyone.”
Jack
“I was given advice by Mortgage and advice specialist Joshua hart, he was clear honest and considerate of my needs, I wouldn’t hesitate to recommend this firm. Thank you for your time and support.”
Ana Elvestad

Frequently asked questions

Income protection insurance pays an agreed monthly benefit if you are unable to work due to long term sickness or injury. This can be particularly useful if your employer does not provide an adequate sick pay scheme. The monthly benefit can be used to help to maintain your lifestyle and make sure that your financial commitments such as mortgage and bills are paid.

It will pay up to 70% of your regular (pre-tax) monthly income depending on the plan that you take out. An income protection plan can supplement an income until you are able to return to work. If you do not have an income protection plan in place you may have to rely on savings to cover living costs while you are unable to work.

If you are self employed and do not have a sick pay scheme then income protection insurance is very beneficial.

Yes. The amount you are allowed to take will be based on your annual income. You may be required to prove your annual income during the application process.

You will also need to complete a medical and lifestyle questionnaire as part of the application and disclose any dangerous or hazardous activities you are required to do as part of your job.

It’s a fairly simple process. If you are unable to work due to long term sickness or injury then you can make a claim directly with the insurer, who may require you to provide a GP sick note. The insurer will start paying your monthly benefit after the policy deferred period has been reached. Your policy will pay out until you return to work or until the policy pay out claim length.

You can choose a plan with either a short or long term claim length.

  • Short-term income protection is designed to cover you should you be unable to work due to injury, or long term sickness. The period of claim is for a fixed amount of time, usually one to two years;
  • Long-term income protection is designed to cover should you be unable to work due to injury, serious or terminal illness. Pay-outs will continue until you return to work or when the policy expires – usually when you reach retirement, or at the end of a fixed period.

A deferred period is the length of time between being unable to work and when the insurer will start paying the monthly benefit. Deferred periods can range from as soon as 1 day up to 12 months.

For example a policy with a 4 week deferred period will commence payments once you have been off work for a period of 4 weeks. During this deferred period you will have to use your savings or another means of paying your bills.

How long the deferred period should be will be determined by a number of factors, for example, does your current employer offer any additional sick pay benefits, do you have any other sick pay arrangements, how long you can survive with reduced income, do you wish to use any savings. Typically the longer the deferred period is on the plan the cheaper the monthly premiums are.

Sources:

* SSP paid from 1-28 weeks, www.gov.uk, July 2020

** ONS 2019