Mortgage Protection Insurance

Mortgage protection insurance can protect all or part of your monthly mortgage repayments.

Please click the following link for more information about our Mortgage Protection Insurance.

Income Protection Insurance

Income protection insurance can protect up to 65% of your income and using this option you may protect your major outgoings including loans.

Please click the following link for more information about our Income Protection Insurance.

Quick Guide To Income Protection Insurance

• What is Income Protection Insurance (ASU) ?
• How does Income Protection Insurance (ASU) work?
• How do I know if I need Income Protection Insurance (ASU)?
• Why would I use Income Protection Insurance (ASU)?
• When might I not need Income Protection Insurance (ASU)?
• If I do decide to buy Income Protection Insurance (ASU) what should I be looking for?
• Should I get advice?
• What are the differences between Income Protection Insurance (ASU) and Loan Payment Protection Insurance and Mortgage Payment Protection Insurance?

This guide is about income insurance and mortgage protection insurance that are both options within this single lifestyle protection insurance policy.

Ant Insurance is a trading name of Garratts Insurance Brokers Limited who are authorised and regulated by the Financial Services Authority (FSA no 300659) Registered Address: Camden House, 2 Camden Place, Preston PR1 3JL.

What is Income Protection Insurance (ASU)?

Income Protection Insurance (ASU) provides you with a monthly income if you become unable to work through accident, sickness or unemployment giving you time to find a new job or recover from illness.

The monthly benefit is limited to a proportion of your net income and varies between providers. This tax free sum is paid directly to you to spend as you wish and will allow you to continue to pay your monthly bills and provide the essentials for yourself and your family until you are able to return to work.
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How does Income Protection Insurance (ASU) work?

Being unable to work, and the loss of income that occurs, is likely to affect your lifestyle. Income Protection Insurance (ASU) is designed to replace your income and reduce the negative effect of your loss of earnings.

Under an Income Protection Policy, you pay regular premiums, and subject to certain conditions, are paid a monthly benefit if you are unable to work because of accident, sickness and unemployment. Income Protection Insurance policies may be offered as Combined Accident, Sickness and Unemployment or Accident and Sickness and you may choose what suits you dependent on your own individual requirements.

Because income protection benefits are free of personal income tax, insurance providers offering income protection will generally limit your benefit to an amount less than your normal earnings. In our case cover up to 65% of your gross monthly income to a maximum of £1500 per month for Mortgage Protection Insurance or cover up to 65% of your gross monthly income to a maximum of £1500 for Income Protection Insurance (also known as Lifestyle Protection).
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How do I know if I need Income Protection Insurance (ASU)?

Firstly - calculate your savings, alternative income or additional income. Potential income sources will depend on your personal circumstances. To find out if you might need Income Protection, ask yourself at least these 5 questions:

1.) What are my total monthly outgoings ?

Estimate the total expenditure of your monthly outgoings and that should include items such as mortgage or rent, loan repayments, utility bills, council tax, food and petrol.

2.) For how long could I survive on my savings ?

You need to realistically estimate your total expenditure and then deduct this from any savings you may have or any other income you may receive. Income protection insurance may be unnecessary if you decide you could survive on your savings.

3.) What are my benefits at work if I become sick or injured?

Your employer may continue to pay you an income (full sick pay benefits) for a limited time and this may therefore allow you to think about the appropriate level of excess you might need in respect of accident and sickness claims. You should check the arrangements your employer has made before arranging income protection insurance.

4.) Will the state give me financial help?

State help will vary depending on your own individual circumstances.

5.) How quickly could I find work?

The answer to this will vary greatly on a case by case basis.
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Why would I use Income Protection Insurance (ASU)?

Giving consideration to the effect on your income and your expenses, how do you think that you would cope with the change in your circumstances if you lost your income or were too ill to work? For how long could you cope? If a shortfall is likely, you should consider taking out short term Income Protection Insurance also known as Lifestyle Protection to protect your family and your lifestyle financially.
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When might I not need Income Protection Insurance (ASU)?

When you have sufficient income from other income sources Income Protection Insurance (ASU) is not always required. If you are one of the lucky few who have sufficient savings to tide them through a period of unemployment, or you believe you could realistically adapt your lifestyle to take account of your reduced income, then you may consider this Income Protection Insurance is not necessary for you.

Income Protection Insurance may be unnecessary if your employer provides you with a generous sickness benefit scheme and a generous redundancy package but the final decision of course is yours.
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If I do decide to buy Income Protection Insurance (ASU) what should I be looking for?

Not all insurance policies are the same so in addition to price considerations you should look for a policy offering the greatest choice and flexibility such as optional benefit periods, back to day one options or varying excess periods.
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Should I get advice?

We do not offer advice on the site . It is your sole responsibility to decide whether a policy is right for you. We would always recommend taking independent financial advice.

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What are the differences between Income Protection Insurance (ASU) and Loan Payment Protection Insurance and Mortgage Payment Protection Insurance?

Income protection insurance covers a percentage of your income and is paid directly to you and you choose how to spend it. It can provide cover for any loan or mortgage repayment, household bills such as rent, school fees, gas and electricity and removes the need for costly separate cover.

Mortgage Payment Protection Insurance (MPPI) and Loan Payment Protection (PPI) have traditionally covered only your mortgage repayment or your loan repayment with no provision for your extra monthly outgoings. However our mortgage protection policies can cover up to an additional 25% of your mortgage repayment to help with your other regular expenses.
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