Best Income Protection Insurance

Income Protection Insurance

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Income Protection Insurance

We understand that many people prefer having somebody to talk to about the features they want from a policy.

We also understand that they may be concerned that they will be pressurised to buy a policy. We promise to give you the information you need without any obligation to buy.

We have built up an excellent reputation with our customers in providing income protection policies via the internet. Over 80% of our customers score us 10 out of 10 on living up to our claim of offering a "good old fashioned service via the internet".

Call us now and experience that service for yourself.

As an independent company we continually review the policies we offer via our website. It is important to us that the policies do what they say they do, and that the insurer is focused on offering excellent customer service. We have stopped selling policies of companies who fall below this standard.

The full policy wording will be available to you before you complete your purchase. We will also send you a copy.

To understand the common features of our policy please see below.

If within 30 days of buying your policy you decide it isn't appropriate to your needs or you simply change your mind, then any premium taken (if any) will be refunded.
Our selected Policy has the following benefits and Features

Maximum Cover £3,000

Can Protect Up to 65% of your Gross Income

Unemployment Only Cover Available

Back to Day One cover

You can spend the money how you wish

Just 60 Day Exclusion Period

Cheaper premiums available for 30 and 60 day excess periods

Read the Full Policy Wording

The KeyFeatures Document explains the core conditions of our policy in simple language. Download your copy below

POLICY KEY-FEATURES

Make sure you are eligible to claim on our policy

Our eligibility and disclosures document explains in clear language who can buy a policy and your other rights under the policy

ELIGIBILITY & DECLARATIONS

 
 
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Platinum Financial Consulting is a fully independent financial services company, authorised and regulated by the Financial Conduct Authority (number 227014) to sell general insurance products.

We offer products from a range of insurers. Unlike many of our competitors we are not compelled to sell the policies of any one company; nor do we try to include every policy in the hope that you will select one. We select what we consider to be a good all round policy, using both quality and price criteria, and feel that the terms and conditions of our policy are among the best in the industry. Some of our policies are not available directly to the general public, and we have refused to sell policies that we feel do not offer customers adequate protection.

Please note: Our recommended policies are not based upon individual appropriateness, but rather we feel that their features versus their cost currently make them one of the best value for money policies in each category from all those available to us. Your policy is purchased as a non-advised transaction. We strongly advise you to read the full policy wording, which you can download from this site. The policy wording is the document you will rely upon in the event of a claim.


Accident and Sickness & Unemployment Insurance - The Simple Stuff


This section aims to give you a good understanding of how most Income Protection accident sickness and unemployment policies work.

While all policies will have their own terms and conditions, there are some generic conditions that most accident, sickness and unemployment policies adhere to. Our featured policy is explained in more detail in the "Comprehensive Information" section below. Please ensure you read the appropriate policy document for your specific policy before applying for cover.

An accident, sickness and unemployment income protection policy will have the following features :


Feature Example
   
The Insured Person You
An Insurable Event Redundancy
Sum Assured £500 per month
Monthly Premium £34
Qualifying Period 30 days
Payment Term 12 Months
Voluntary Excess Period Back to day one
Exclusion Period 60 Days


In this example, as long as you continue to pay the monthly premium (£34), you will become eligible to claim after the exclusion period has expired (60 days). Using the example data above; if you purchased the policy on 1st January then you become eligible to claim on 2nd March. If you become aware that you are going to lose your job during the exclusion period the policy will not pay out.

Once the exclusion period has expired then if the insurable event occurs (i.e. you are made redundant) and the insurable event continues until the end of the qualifying period (i.e. you are unemployed for 30 continuous days) then the sum assured (£500pm) will be paid. Once the policy has started to pay, it will continue to pay for the payment term of the policy (12 months). The policy will stop paying you if you are able to go back to work, or the payment term expires.

All policies have a qualifying or waiting period which means that you need to be registered as unemployed for 30 days in order to make a claim. Each policy will also have a voluntary excess period, which is the length of time that you chose to wait before the policy starts to pay out. So for example, with Back to Day One cover, you only need to be unemployed for the qualifying period (30 days) before the policy will start to pay out, and will pay you back to the first day of the claim. If you choose a 60 day excess (sometimes called a deferment period), you will need to be still without work after the qualifying period plus the excess (i.e. 90 days) before the policy will start to pay, and it will then pay you back to day 60 of your claim.

These policies are ideal for protecting your income against unemployment resulting from redundancy, or against accident and sickness. Policies are issued on an individual basis only. These policies do not normally require any medical underwriting, although pre-existing conditions may be excluded.

The policy has no predefined term. Therefore all the while you continue to pay your monthly premiums, and you meet the insurer's eligibility criteria, then the policy will remain in force. Most insurers have conditions in their policy wording that allows them to increase the premium and / or cancel cover.

These policies do not pay out a lump sum.

The insurer will normally put a level on the maximum amount a policy will pay out each month. The maximum level that you will eligible for under the policy is usually determined by a percentage of your gross annual income. You will therefore need to prove your income in the event of a claim. Most policies will cover between 50% - 65% of your gross earnings, however it should be remembered that as the benefit is paid to you tax free, the actual amount you receive could be a much higher percentage of your net (or take home) pay.



That’s the simple stuff.... for those of you who like more information, then there is a whole lot more detail below, as well as more details of our featured policy, or you can download the policy summary by clicking the link above.

 

 

INCOME Linked Income Protection - Comprehensive Information


We are not obliged to sell the policy of any particular company. We constantly review the policies we offer and can change them at any time.

12 Month Income Linked Policy – Core Conditions

We are pleased to be able to offer our clients an opportunity to obtain accident sickness and/or unemployment insurance even if they have no mortgage.

If you have no mortgage then this is the only way to protect your income against unemployment.

It can also be used to top-up existing mortgage-linked policies, if your income and liabilities allow.

Our Income Linked Protection policy works in exactly the same way as mortgage related Accident, Sickness and Unemployment Insurance.

Our Income protection policy allows you to insure your income to help meet your monthly bills and living expenses in the event that you are made redundant or are off work sick. You do not need to have a mortgage to be eligible for this policy.

It is possible to protect up to 65% of your gross earnings (before tax and other deductions), up to a maximum of £3,000 per month. In the event of a claim you would need to prove your income.

This policy allows you to insure yourself against unemployment only, or accident and sickness only, or accident sickness and unemployment.

The payment term is 12 months. This means that in the event of a claim, the policy will continue to pay you a monthly amount until you either go back to work, get better, or the payment term ends.

The qualifying or waiting period is 30 days. This means that you must be registered as unemployed, or signed off work sick by a doctor, for 30 days in order to make a claim. This is usual for these types of policies.

The policy has a 60 day exclusion period for unemployment claims. This means that you cannot make a claim for unemployment in the first 60 days after buying the policy; this is standard practice as it stops people buying a policy one week and claiming the next. All policies will have an exclusion period when you first buy a policy, we are not aware of any policy that has no exclusion period.

However there is no exclusion period for accident and sickness claims, although pre-existing conditions may be excluded.

Some people who already have a mortgage related policy buy this income linked cover as well. This enables them to top-up their existing level of cover (income allowing) so that in the event of a claim they can pay their mortgage and related costs, but also have some additional funding for themselves. This is known as running policies in tandem.

All of the policies that are available on this website can be run in tandem. However if you already have a mortgage payment protection policy and want to buy stand alone income related cover, please check with your existing insurer that they will allow you to run policies in tandem.

If you purchase this policy to run alongside a mortgage linked or other similar policy, the total of all the cover you purchase must not exceed 65% of your income. Should you over insure yourself then one or more insurers will reduce the amount they pay you in the event of a claim, to bring the total payment you receive back in line with their policy maximum percentage. This will not only delay a payment, but it can be very confusing and stressful. There is not guarantee that you will be refunded any over payment of premium.

Please don’t hesitate to contact us on 020 33 55 4834 and we can discuss setting up a portfolio of policies to meet your needs, or review your existing mortgage policy to see if we can save you money.

 

What you need to know


An Income Protection plan will give you peace of mind in the knowledge that you will receive a regular monthly payment if you cannot work due to accident or sickness or if you are made redundant.

There is a 1 in 7 chance of a working adult being off work for more than 6 months due to illness or injury.*

More than 2 million people have been off work and claiming benefits for a period of 6 months or more.*

You are three times more likely to be off work for more than 3 months due to illness or injury than to die before age 65.*

* Source - Department for Work & Pensions (DWP), 2004

Income Protection & ASU

There is a great deal of confusion about Income Protection Insurance and Accident, Sickness & Unemployment Insurance (ASU). They are effectively the same thing. An income protection policy is set up to pay you a monthly income in the event of a claim for accident, sickness and/or unemployment. It is possible to insure yourself even if you do not have a mortgage or pay rent.

It is important to decide what eventualities you want to cover. Many self employed people would instantly lose their income if they were unable to work due to accident or injury, therefore they would seek to cover these eventualities. They may not however necessarily want to include unemployment cover as it may be difficult for them to prove in the event of a claim.

People in regular employment may not be as concerned about covering accident and sickness, if they feel their employer will pay them if they are off sick, but they may be concerned about redundancy and their chances of finding work elsewhere. In this case they may only want a policy that covers unemployment.

For the vast majority of people, both unemployment and the impact of long term sickness or injury are of sufficient concern to make them to decide upon a policy that covers all eventualities.

A policy taken out to protect income normally allows you to insure a percentage of your gross income. It is not possible to protect all of your income, as the insurer wants you to be incentivised to return to work.

These policies are available upon application without the need for underwriting or medical examination. There are certain criteria that would not be covered in the event of a claim, and these are covered in detail in the policy wording for your specific policy. For example, you will not be successful in your claim for unemployment if you knew you were to become unemployed when you first bought the policy, or if the insurer considers that it was reasonable that you knew it was likely to happen, or if the unemployment is in any way voluntary.


Income Protection Policies (IP or PHI) - Long Term Health Linked Policies

Income Protection policies should not be confused with Permanent Health Insurance (PHI) which pays out against accident and sickness only. These policies are linked to your earnings and typically have a term until retirement age. These are fully assessed insurance policies and medical underwriting will be required.

The main differences between Permanent Health Insurance Policies and Accident, Sickness and Unemployment policies are:

  • ASU Income Protection policies will only pay for a short term period, typically 12 months
  • PHI could pay out for many years, possibly until retirement age
  • PHI does not cover unemployment or redundancy
  • PHI requires full underwriting
  • PHI is based upon your income, some ASU policies are based on a loan, such as a mortgage, although the trend is to move towards income based ASU.

Why these policies?


As an independent finance company, Platinum Financial Consulting is not committed to sell the policies of any one company.

We try to identify the best policy in each individual sector. We evaluate the policy available on a number of criteria such as the terms and conditions offered, the claims payment history of the company, the financial strength of the company providing the insurance and perhaps most importantly the premium.

Although we have many more policies available to us, the ones that we have selected are currently the policies which we consider to be amongst the leading policies in their category. We can however stop selling a policy if a better policy becomes available, or the service offered by the company is not of a standard that we would accept for our customers. Under no circumstances would we ever sell, and certainly not recommend, any policy offered by Hitachi Capital. After unfairly cancelling many customers policies they then refused to cooperate with the Financial Ombudsman. We would not deal with any company that treats its customers this way.

Many of the companies who offer this insurance on-line are either selling their own policy, or trying to offer everything in the hope that you will buy something from them. We build a personal relationship with both our customers and the insurance companies who provide these policies. This means that we can ensure our customers are always receiving the best service available.

Our whole of market independence in this area means that we can reject those policies that we feel do not offer both quality or competitive premium. We have removed products from our website which we feel are not in the best interests of our clients.

Should we change an insurance provider, we will assess the new policy against those held by existing policy holders and where appropriate we will offer our customers the alternative policy.

This Policy Will Never Pay Out If:


You cease to be resident in the UK
or
if your disability or unemployment results from:
civil unrest, terrorism, radiation and radioactive contamination from nuclear waste or any related event or earthquake;
HIV or any HIV-related illness including AIDS;
or taking alcohol or drugs, unless under the advice or supervision of a doctor.

For full policy terms and conditions it is important that you read the policy wording appropriate to your specific policy.


These notes are intended as a guide only. They should not be considered as specific advice.

Upon application we will confirm you have supplied all necessary information, and inform you of the terms and conditions of the selected provider, before the policy comes into force.

If you think these notes are incomplete or misleading in any way, please contact us immediately.



 


Frequently Asked Questions (FAQ's)
 


When is the Unemployment exclusion period waived?

The insurer will only consider waiving the exclusion for unemployment if you are switching cover from another policy. Then again this will only be on a like for like basis. For example if you currently have an income protection policy that will pay you £1,000 per month and you switch to a policy offering £1,500 per month, then, as long as you have held your original policy longer that the exclusion period on your new policy, the insurer will waive the exclusion on £1,000 of your new cover - this being the amount of cover you already have. The additional £500 of cover would be subject to the exclusion period of your new policy.


Do you offer joint redundancy policies?

Income-linked unemployment cover (if you don’t have a mortgage) does not allow for joint cover, as the amount of benefit is dependant on the individual’s gross income.

Both husband and wife, or partners, can each individually take out their own unemployment protection policy, and in the unlikely event that both of you are made redundant at the same time, both policies will pay out.

These notes are intended as a guide only. They should not be considered as specific advice.

Upon application we will confirm you have supplied all necessary information, and inform you of the terms and conditions of the selected provider, before the policy comes into force.

If you think these notes are incomplete or misleading in any way, please contact us immediately

 
 
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Best Income Protection is a trading style of
Platinum Financial Consulting
The Old School House, East End Road
Bradwell-on-Sea, Essex, CM0 7PY
 
 

 

Telephone : 020 33 55 4834           Fax : 0871 277 1422           Email : info@platinumifa.co.uk

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