About Us
We are an independently owned business, having been established for over 20 years.
Insurance products have become more sophisticated and our staff specialise in providing information regarding different policies to ensure our clients have a thorough understanding of the products on offer.
We do not charge any fees for the arrangement of insurance and we are registered by the FSA, our registration number is 300408.
We offer a range of Financial Services including:
| Residential Mortgages Secured Loans Commercial Mortgages |
Life Insurance Serious Illness Insurance Buildings & Contents Insurance |
Quick Guide to Income Protection Insurance
What is Income Protection Insurance (ASU)?
How does Income Protection Insurance (ASU) work?
How do I know if I need Income Protection Insurance (ASU)?
Why would I use Income Protection Insurance (ASU)?
When might I not need Income Protection Insurance (ASU)?
If I do decide to buy Income Protection Insurance (ASU) what should I be looking for?
How long can I wait before I would need to claim?
What are the differences between Income Protection Insurance (ASU), Loan Payment Protection Insurance and Mortgage Payment Protection Insurance?
What is Income Protection Insurance (ASU)?
Income Protection Insurance (ASU) provides you with a monthly income if you become unable to work through accident, sickness or unemployment giving you time to find a new job or recover from illness. The monthly benefit is limited to a proportion of your net income and varies between providers. This tax free sum is paid directly to you to spend as you wish and will allow you to continue to pay your monthly bills and provide the essentials for yourself and your family until you are able to return to work.
back to topHow does Income Protection Insurance (ASU) work?
Being unable to work, and the loss of income that incurs, is likely to affect your lifestyle. Income Protection Insurance (ASU) is designed to replace your income and reduce the negative effect of your loss of earnings. Under an Income Protection Policy, you pay regular premiums, and subject to certain conditions, are paid a monthly benefit if you are unable to work because of accident, sickness and unemployment. Income Protection Insurance polices may be offered as Combined Accident, Sickness and Unemployment only, or Accident and Sickness only and you may choose what suits you dependent on your own individual requirements. Because income protection benefits are free of personal income tax, insurance providers offering income protection will generally limit your benefit to an amount less than your normal earnings, usually up to 50% of your gross income up to a maximum of £12,500. Income Protection Policies have variable options that might include: Exclusion Periods (or Waiting Periods): This is the length of time, from the start date of the policy you must wait until you are able to claim for redundancy this can vary between 60 days to 180 days.
back to topHow do I know if I need Income Protection Insurance (ASU)?
First - calculate your savings, alternative income or additional income. Potential income sources will depend on your personal circumstances. To find out if you might need Income Protection, ask yourself these 5 questions:
- What are my total monthly outgoings ?
Estimate the total expenditure of your monthly outgoings that should include items such as mortgage or rent, loan repayments, utility bills, council tax, food and petrol. - For how long could I survive on my savings?
You need to realistically estimate your total expenditure and then deduct this from any savings you may have or any other income you may receive. Income protection insurance may be unnecessary if you decide you could survive on your savings. - What are my benefits at work if I become sick or injured?
Your employer may continue to pay you an income (full sick pay benefits) for a limited time and this may therefore allow you to think about deferred payments however most employers will only pay Statutory Sick Pay. You should check what arrangements your employer has made before arranging income protection insurance. - Will the state give me financial help?
State help will vary depending on your own individual circumstances but as a general rule, if you are eligible i.e. you have paid sufficient National Insurance Contributions. the government will pay around £65 a week (single people over 25's) for JobSeekers Allowance but sometimes this is means-tested.
You should check with your JobCentre Plus to see what your particular circumstances would be in the event of a claim. - How quickly could I find work?
The answer to this will vary greatly depending upon your occupation and where you live.
Why would I use Income Protection Insurance (ASU)?
Giving consideration to the effect on your income and your expenses, how do you think that you would cope with the change in your circumstances if you lost your income or were too ill to work? For how long could you cope? If a shortfall is likely, you should consider taking out Income Protection Insurance to protect you and your family lifestyle.
back to topWhen might I not need Income Protection Insurance (ASU)?
When you have sufficient income from other income sources Income Protection Insurance (ASU) is not always required. If you are one of the lucky few who have sufficient savings to tide them through a period of unemployment, or you believe you could realistically adapt your lifestyle to take account of your reduced income, then you may consider this Income Protection Insurance to be unnecessary. Income Protection Insurance may be unnecessary if your employer has a sufficient sickness benefit scheme but you could then reduce your premiums by looking at deferred payments to begin once your company benefits cease.
back to topIf I do decide to buy Income Protection Insurance (ASU) what should I be looking for?
You should look for a policy offering the greatest choice and flexibility such as optional benefit periods, age banded premiums, and choice options should be available. The reputation of the provider may also be a consideration.
back to topHow long can I wait before I would need to claim?
Some income protection insurance policies provide deferred payments where you will not receive benefits for a chosen number of months. This is useful if you have savings that could tide you through a short period before you would need to claim. This option can also be used to defer the number of months equal to your receipt of full sick pay from your employer. Once you then drop into receipt of statuatory sick pay you may then claim. Income protection insurance has a qualifying period of 0 days after which you may have the choice of 7 days, 1 Month, 3 months, 6 Months or 12 Months deferred periods.
back to topWhat are the differences between Income Protection Insurance (ASU), Loan Payment Protection Insurance and Mortgage Payment Protection Insurance?
Mortgage Protection or loan payment protection are specifically linked to a mortgage or loan payment and provides very little flexibility. Income Protection covers a percentage of your income and is paid directly to you and you choose how to spend it. It can provide for any loan or mortgage repayment, household bills such as rent, school fees, gas and electricity and removes the need for costly separate cover. It requires just one policy for your whole working life and the insurance premium can be guaranteed to not increase for the duration of the policy.
back to top