Frequently Asked Questions about Income Protection Insurance

Q. How much does income protection cost?

Income protection premiums vary between companies but as a rough guide you can expect to pay approximately £2.40 for every £100 of benefit. As there are so many insurance companies wanting your business it is most definitely worth shopping around to make sure you get the best value for money.

Q. Is a medical necessary as part of the application?

No, it is not usually a requirement for the applicant to under go a medical, although if you suffer from an ongoing illness it is imperative that this is declared at the time of application. If at any time you do make a claim and the information provided on the application is found to be incorrect, the insurance provider will not be obliged to pay out any benefit and the policy will be deemed null and void.

Q. What happens if there is no claim made on the policy and the policy is cancelled?

Unfortunately, as with most insurance policies, if the policy is cancelled without making a claim there is no refund due. The premiums are not refundable.

Q. Is there a complaints procedure within the industry?

Yes. The best way to resolve any dispute is to consult the company who originally sold you the policy. If you are still unhappy with the efforts made, you are able to take the complaint to the financial ombudsman. This the mediator for the financial industry and will assess the complaint independently and take the necessary action.

Q. Are the premiums fixed for the duration of the policy?

This should be checked with the policy provider as the answer to this will differ depending on the length of the policy. If the policy is ongoing, where premiums are paid monthly, it is common for the premiums to increase slightly each year. This is due to the age of the policy holder, health etc.

Guide Contents

Income Protection Insurance
Finding the best Income Protection insurance
Compare Income Protection insurance plans
Buy Income Protection insurance
Frequently asked questions about Income Protection insurance
Where to get more help about Income Protection insurance

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