When you organise cover with our team you will get the following benefits:
Our expert advisors can help you find the best policy from many large providers such as Legal & General, Aviva, Vitality and Scottish Widows. We also have access to solutions from various smaller specialist providers.
No fee to advise & arrange
We don't charge to discuss your requirements; there are no fees for us to research and explain your cover options, we don't even charge to arrange the cover, organise a trust and even write your Will at the same time - no fees whatsoever!
Using our professional comparison tool (CI Expert) we are able to compare not only pricing but also the number of conditions covered and the pay-out definitions of each condition.
Explain products & options
Critical Illness cover, serious illness cover, accident & sickness, income protection - with so many options let us explain each and help you find the right cover for you and your family.
Health based recommendation
When we make a recommendation we take into account your health, family history and lifestyle, this means that when we give you a price, it is less likely to be adjusted following the underwriting process.
Review existing policies
As part of the advice process we always take a look at any existing policies that you have in place and review them to ensure they are the most comprehensive and competitive available.
Free last will & testament
When you take a policy with Dunham McCarthy Mortgages our colleagues at Mylastwill.co.uk are happy to provide a full, legally binding last will and testament without charge - it's all part of the service!
Policies written into trust
To minimise delays and reduce Inheritance Taxes, we can write you policy into a discretionary trust, again no charge!
What is Income Protection?
Income protection, formally known as permanent health insurance, is a policy that pays out if you’re unable to work because of injury or illness. It differs to critical illness in that it doesn’t pay out one lump sum, its designed to pay you a monthly amount, as a percentage of your income to help with monthly outgoings.
Policies are usually paid monthly for the term of the policy or the full term of your life – depending on what type of Life Insurance you go for.
It’s worth understanding that its intended to protect you for a pre – designated period. This could be a short period of 6 months for example, or instead the pay-out could be for many years. Ongoing illnesses or medical conditions would be covered by a critical illness policy. Income protection will not cover you for redundancy or dismissal from your employment.
Just like Life Insurance or Critical Illness Insurance, Income Protection Insurance takes into account your medical history. However, it also looks closely at what profession you are involved with; the more dangerous your job, the more expensive your cover will be as a result of the risk of you being off work.
What are the types of Income Protection available?
Income protection differed significantly between providers, with many different products, often with confusing names. As mentioned already, it can be referred to as ‘permanent health insurance. In some instances, its also referred to as ‘Long-Term Disability Insurance.’ Many insurers also abbreviate Income Protection Insurance as IP!
Broadly speaking, Income Protection Insurance is available in the following forms:
Unable to perform specific tasks associated with your job.
Unable to perform in your own role or another role suited to your training and education.
Pays out if you are unable to perform any occupation.
Activities of Daily Living (ADL)
This pays out if you are unable to do simple tasks like eating, getting dressed, cooking or climbing stairs..
Do I need Income Protection?
Unless you can manage on Statutory Sick Pay (presently just £94.25 a week) the answer is yes! As this is seldom enough to cover ones monthly financial commitments. As you will be aware, almost everything in life is money dependent (eating / clothing / heating & utilities). As soon as our income stops our lifestyle, financial stability and well-being is very much at risk.
How much does Income Protection cost?
This very much depends upon your individual circumstances, your health, the type of job you do, the amount you would like to receive each month. Depending on how much you earn, it’s possible, to pay as little as around £15 a month up to several hundred pounds – depending upon your needs.
You can also ‘index link’ your income protection to take into account future rises in the cost of living, however, this will also make your premiums more expensive.
How much cover can I get?
This will largely depend on the amount you are prepared to pay, for employed people the maximum is often 65% of your monthly income (in some instances 70%). For self-employed people, monthly pay-outs are often calibrated at between 50 to 70% of your pre-tax profit.
The amount you receive will affect your state benefits (the amount of universal credit you are entitled to), however, the monthly sums are tax free.
Does Income Protection always pay out?
In genuine cases, income protection does pay out. The instances that it doesn’t pay out could be down to:
Where details of an illness or condition were withheld at the time of taking out the policy. This is most often a pre-existing medical illness that policy holders didn’t disclose because of the effect it would have on the premium.
If you miss a payment, sometimes by accident (example changing banks or forgetting to transfer funds from one account to another) or because you are going through difficult financial times. Either way, it is important to talk to your provider right away since missing a payment might result in the policy being cancelled. Most providers will offer a way to assist you.
Usually, when you take out a policy, there is a period at the start, where you are not eligible to make a claim
Whilst disability and illness might be covered short term, on going disabilities, illnesses and medical conditions, that prevent you from working are not covered; this is where critical illness comes in.
These will vary from policy to provider. Certain medical conditions, travel to certain countries (war zones for example) and certain sports. Its important that you disclose everything about your lifestyle, hobbies and medical conditions so that a policy and provider can be found that meets your requirements.
Redundancy / Dismissal
Income protection will not pay out for redundancy or dismissal from your job with the slight exception of (ASU).
Do I need to put my Income Protection Insurance in a trust?
The simple answer is no.
Where should I get my Income Protection insurance from?
As with all forms of insurance, there are many providers and types of policy – so much so, that it can be difficult to know quite where to start.
Its always best to get some free impartial advice from a specialist like Dunham McCarthy Mortgages since they already have a considerable market and product knowledge and will know exactly what’s best for your individual circumstances.