Income protection insurance comes in many guises, and choosing the right policy can seem daunting without the right guidance. Lycetts is experienced in helping clients to select the best policy for them, depending on their personal finances and their employer’s provision in the event of an accident or sickness.
This type of policy is usually arranged as a percentage of annual earnings and is paid out as a regular income after a pre agreed waiting period. It is usually also paid tax free. It differs from payment protection insurance (PPI), the widely miss-sold insurance product, in that it pays out to the policyholder, not the lender, and it usually continues until you return to work, retirement or death.
A small minority of employers make allowances for absences from work for more than one year, and therefore it is worth assessing how personal expenses, such as mortgages and dependents, will be covered in the event that you are unable to work.
