Due to coronavirus, Unemployment cover is not currently available. Cover is available for Accident and Sickness.

Income Protection

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  • Cover if you're off work for accident, sickness and unemployment
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  • Protection for your income and financial commitments

 

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What is income protection insurance?

Income protection refers to a family of insurance products which ensure you can continue to meet your financial commitments if you are forced to take an extended break from work.

If you can’t work because you’ve had an accident, fallen sick, or lost your job through no fault of your own, income protection insurance pays you an agreed portion of your salary each month. You can then use the money to cover debt repayment, bills and other costs. Income protection is especially useful for people working in dangerous industries who want to be sure their mortgage will always be covered.

Income protection only covers events beyond your control: you’re much less likely to be covered if you’re fired from your job or if you injure yourself deliberately.

Types of income protection

There are three main types of income protection insurance to choose from:

Accident, sickness and unemployment

Read more

Payment protection insurance

PPI sees your insurer make up part or all of the repayments on your outstanding loans, normally for up to two years

Read more

Mortgage payment protection insurance

Read more

Short-term vs long-term income protection

Most income protection insurance policies are short-term: they pay out for a set period, usually up to two years, while you get back on your feet and return to work.

Long-term income protection is available too, will provide a regular income for a longer, pre-agreed period until you are well enough to return to work. Unlike most short-term income protection policies, it will generally not cover you if you are made redundant.

There are two types:

Tick

Own occupation: 

This policy will pay out if the holder is prevented from doing any aspect of their job due to an accident or illness. Premiums are more expensive because there is more cover

Tick

Suited tasks: 

This type of policy is cheaper, because your insurer won’t pay out if it decides that even though you can’t do your main job, your employer has other types of work you can still do

Top industries where people take out income protection

Income protection cover is available for everyone, but there are certain
industries where it’s most popular. These include:

Constuction
and property

Manufacturing 

Engineering

Information
technology services

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.

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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.