per £100 pm benefit
per £100 pm benefit
per £100 pm benefit
Ant Insurance is the trading name of FIUK.com Ltd. Authorised and regulated by the Financial Services Authority. Registered in England & Wales No. 05096433. Registered Office 12 Littleworth Road, Esher, Surrey KT10 9PD.
Income Protection Insurance (ASU), UK's lowest cost Income Payment Protection Insurance, 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. With our income protection insurance no medicals are required and individual habits such as smoking do not affect your premium or your eligibility.
The monthly benefit is a proportion of your net income and varies between
providers, usually to a maximum of 75% but with a benefit limit, again variable,
of up to £2,000 whichever is the lesser. You may choose any proportion of
that amount to be paid in monthly installments for a length of time that is
determined by the benefit period you choose, usually to a maximum of 12 months
for any one claim. 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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Being unable to work, and the loss of income that incurs, 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 to an insurance company and subject to certain conditions they agree to pay you a monthly benefit if you are unable to work because of accident, sickness and unemployment. Income Protection insurance polices may be offered as Combined Accident, Sickness, Unemployment Only income protection or Accident & Sickness Only income protection, and you may choose 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 up to up to 75% of your net income up to a maximum of £2000.
Income Protection Policies have variable options that might include:
Deferred Payments: When offered this allows you to choose at what point you
want the benefit payments to start after you are unable to work. If you have
savings or a good company scheme it may be possible to "defer" the payments
for 3, 6 or even 12 months. The longer the deferment period, the cheaper the
premium generally is. However in our case, payments are paid Back to Day 1
(see below) and your insurance premiums are also kept low.
Exclusion Periods (or Waiting Periods): This is the length of time, from the
start date of the policy, until you are able to claim for redundancy. This
is different from deferred payments as it is a once only exclusion period.
Back to Day 1: Many income payment protection policies (including ours) now
offer the option of Back to Day 1 cover. This means you may make an insurance
claim after 31 days of redundancy, accident or sickness and the payment will
be backdated to the first day.
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First - calculate your savings or 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 these 5 questions:
Estimate the total expenditure of your monthly outgoings that should include items such as mortgage or rent, loan repayments, utility bills, council tax, food and petrol. If you wish you may add your insurance costs for this cover or other insurances you pay, such as household insurance buildings insurance or motor insurance.
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.
Your employer may continue to pay you an income for a limited time. Some employers will only pay Statutory Sick Pay. Others may be more generous. You should check what arrangements your employer has made before arranging income protection insurance.
State help will vary depending on your own individual circumstances but as
a general rule, if you are eligible, the government will pay approximately
£57.45 a week (over 25's). Some of these benefits are means-tested, and in
most cases there are conditions that have to be met, such as your having paid
sufficient National Insurance contributions.
If you have had a mortgage since October 1995 help for mortgage payments is
not available for the first 9 months and then the payments will cover the
interest only, for those with a mortgage prior to October 1995 there is no
help for the first two months.
The answer to this will vary greatly dependent upon your occupation and where
you live.
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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
to protect your family and your lifestyle.
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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
or any other income protection insurance product to be unnecessary.
Your employer may have a good sickness benefit scheme:
Income protection insurance may be unnecessary if your employer has a sufficient
sickness benefit scheme.
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How much income do I need to protect ? Find an income protection policy that offers the maximum choice, this varies between 50% to 75% of your net income to a maximum of between £1,000-£2,000. Our income protection insurance policy allows you to cover up to the upper limit in both cases, i.e. up to 75% of your net income up to a maximum of £2000.
Some income protection insurance policies provide deferred payments where
you will not receive benefits for a number of months. You may consider that
an interval, between when your employer stops paying you and when income from
your income protection policy starts, would also be acceptable if you had
savings. Our income protection insurance has a qualifying period of 30 days
after which insurance payments are made to you backdated to day 1.
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Your
choice of income protection insurance will be dependent upon your individual
circumstances but monthly benefit varies between 3, 6, 12 or 24 months for
any one individual claim.
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As a responsible income protection insurance provider, our site provides a
wide range of information on our products and we issue a 'Key Facts' document
to help you make comparisons between income protection insurance policies.
However our offer of income protection insurance is non advisory so taking
independent financial advice may be helpful.
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Covers a percentage of your income and is paid directly to you and you choose
how to spend it. It can provide for any loan or mortgage repayment, household
bills such as rent, credit cards, school fees, gas and electricity and removes
the need for costly separate cover. It requires just one policy for your whole
working life and the insurance premium will not increase according to age
for the duration of the policy.
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Covers only your loan or your mortgage repayment. It rarely makes provision
for your extra monthly outgoings although some mortgage protection policies
will additionally cover associated mortgage costs. Generally you would require
a new policy with each new mortgage or loan you obtain so pricing and acceptance
could then be affected over time by your health and your age.
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Ant Insurance is the trading name of FIUK.com Ltd. Authorised and regulated by the Financial Services Authority. Registered in England & Wales No. 05096433. Registered Office 12 Littleworth Road, Esher, Surrey KT10 9PD
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