What is income protection?
Income protection is a short-term insurance product which people take out in case unforeseen circumstances prevent them from working for a set period – for instance injury, illness or redundancy.
What does income protection cover?
Income protection is an umbrella term for a range of insurance projects, including policies which make repayments on a mortgage or specific loan, to a general pay-out for people who find themselves out of work. So if you lose your job, you know you can keep up on your mortgage and keep your household going.
Will income protection cover me if I lose my job?
Yes, income protection insurance covers you if you lose your job – provided you lose it through no fault of your own. If you’re fired for something bad you’ve done, or if you leave the job without another one lined up, your policy most likely won’t pay out.
If you opt for Accident, Sickness and Unemployment (ASU) insurance, it probably won’t cover your full salary – most policies pay out a decent percentage of your total monthly take-home.
Does income protection cover the self-employed?
Certain income protection policies are available for people who are self-employed. You need to specify your employment status with your insurer, and the terms may be a little different – but self-employed ASU policies do cover you in the event you can’t work due to illness or injury.
How long will income protection cover me if I’m out of work?
Most income protection policies are designed for the short-term, so they tend to pay out for 12 months, or 24 months in some circumstances. After this period, if you’re still too ill to work, the government should hopefully pick up the slack.
Does income protection cover mortgage repayments?
Mortgage Payment Protection Insurance designed to cover your mortgage if you lose your job through no fault of your own.
When you apply for income protection, you specify to your insurer what you want your insurance to cover, be it your income, your mortgage or loan repayments.
How does income protection work?
The income protection insurance offered by MoneySuperMarket is not agreed between your insurer and your mortgage or loan lender. Instead, once you successfully made your claim, you will receive monthly instalments of an agreed sum. You then make your repayments to your creditors in a separate transaction.
Get Money Calm
MoneySuperMarket gives you lots of clever ways to save a lot, by doing very little.
- Take control of your credit score by checking and improving it for free with Credit Monitor
- Never overpay again with Energy Monitor, our energy monitoring service
- Over 50 ways to Get Money Calm
So how do we make our money? In a nutshell, when you use us to buy a product, we get a reward from the company you’re buying from.
But you might have other questions. Do we provide access to all the companies operating in a given market? Do we have commercial relationships or ownership ties that might make us feature one company above another?
We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.