Buy Income Protection insurance | Factors to consider beofre buying

Buy Income Protection Insurance cover

Income Protection is probably one of the most valuable insurance policies to have in this day and age. Having peace of mind and financial security is priceless. The great thing about this insurance is that most people who work will qualify for it.

Some typical requirements to qualify for Income Protection are;

Over 18 years

Under 60 years

Employed by same employer for last 6 months

Working over 16 hours per week

Reside in the UK

Once a policy becomes active, there is usually a time period which must elapse before you are able to make a claim. This time period will vary according to the terms and conditions of the individual policy.

Before signing for a policy, ensure that you fully understand all the terms and conditions.

To find the right policy, it is wise to shop around, compare premiums and compare what benefits are paid out. There are huge numbers of companies offering Income Protection, all of which must be registered with the Financial Services Authority (F.S.A). You are able to check the F.S.A’s website where you will find a register of all insurance providers.

The Internet is a great place to start the search for the best Income Protection Plan. There are a number of best buy tables which gives a good indication of premiums and the amount of cover offered.

Alternatively, if you walk down the high-street to the mainstream banks, building societies or even to some of the larger supermarkets, you will be able to pick up an array of leaflets detailing different income protection plans which they offer. If this is all sounding like alot of work, there is always the option to hand over the leg work to an Independent Financial Adviser. Being Independent, they are able to search the whole market to find the most suitable product at the best price. Of course there will be a fee for this service, so check this out first!

Once the agreement has been signed, you have a 30 day cooling off period which allows you to cancel the policy without penalty.

Once the plan has been selected, it is common for certain documents to be requested as proof of identification such as;

driving license

passport

letter from employer stating length of employment

bank details to make regular premium payments (it is possible to pay premiums annually or monthly)

If you have used a Financial Adviser, they will usually assist in the completion of any forms. Alternatively the forms maybe completed on-line, over the telephone or by mail, all depending on how you sourced the insurance policy.

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