By Patrick Kearney
3 months ago

Understanding Income Protection Insurance


Income Protection is an insurance policy designed to make sure you continue to receive an income if you are unable to work due to a disability or illness.

Bettersafe has designed a comprehensive Short Term Income Protection policy to protect our customers should they suffer the loss of income because of accident or sickness.

Being unable to work can be very stressful and unsettling, especially when the majority of us have bills to pay. That's why we have focused on designing a product that offers choice, flexibility, and support if you need to make a claim.

A Bettersafe Income Protection policy ensures that you continue to receive a regular income until you can return to work.

What does the policy provide?

Income protection simply replaces part of your income in the unfortunate situation you are unable to work because you became ill or have suffered an injury. The policy will pay out up until you are able to start working again, you retire, die, or until the end of the policy term.

Income protection covers most accidents and illnesses that leave you unable to work. On top of this, there is the benefit of being able to claim as many times as you need.

Do I need an Income Protection cover?

As with all insurance, this question hugely depends on your individual circumstances. Purchasing something like accident and sickness insurance would depend on a number of factors. This includes your monthly outgoings, access to sick pay, and whether or not you could afford to be off work for any length of time.

It is also worth considering that in 2017 the Association of British Insurers (ABI) published that every year, one million people in the UK find themselves unable to work due to a serious illness or injury.

In 2020 because of COVID, this number has obviously risen due to positive tests and isolation periods. COVID has shown the importance of protecting your income, as many of us have been forced to take time off work in order to isolate, meaning many have struggled without income.

What are the key benefits of Income Protection?

Briefly, the key benefits of Income protection are:

  • Cover of up to £2,000 per month;
  • Range of waiting periods from zero days up to 120 days;
  • Switch your cover from a previous provider with no extra charge;
  • Easy to pay monthly premiums;
  • Claims payments made directly to you;
  • Helpline service offering support for personal legal advice, tax advice, and counselling.

Does Income Protection apply to me if I catch COVID?

In short, yes. Our Income Protection policy applies to all those who are unable to work because of accident or sickness. So if you are unfortunate enough to catch the virus and are forced to isolate, you would be able to claim on your policy.

How much does income protection cover cost?

The cost of a policy will vary depending on your particular circumstances. Factors which will affect your premium are:

  • Your job;
  • Age;
  • Your health;
  • The range of injuries you wish to be covered;
  • When you want your policy to end.

The best way to find out how much a policy will cost is by getting a free quote with Bettersafe here!

What about unemployment?

Unfortunately, due to the pandemic, we are currently only able to offer accident and sickness cover.

Further information

If you wish to have more information you can have a look at the insurance documentation and to the IPID.