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• Income Protection Solutions explained

Income Protection Solutions explained

Income Protection Solutions gives your clients a number of key benefits as well as being flexible so you can provide your clients with a product that suits their needs.

Guaranteed and Reviewable rates

Income Protection Solutions offers your clients the choice Guaranteed or Reviewable rates.

By choosing Guaranteed rates your clients premium and benefit rates are fixed at outset and will not change over the entire term of the policy.

By choosing Reviewable rates, premiums and benefit rates may change to reflect changing risks. This will only occur on every 5 year anniversary of the policy. The premiums for Reviewable rates can therefore be slightly lower than those offered on guaranteed rates as premiums may increase or decrease over time.

Index linking

The index linking option available on our Income Protection Solutions policy will link your benefits to the Retail Price Index increasing them annually as RPI increases. The premium paid will also increase as the benefit increases.

Benefit level

Your clients can insure up to 60% of their gross earnings to help cover mortgage, bills and lifestyle needs up to a maximum of £180, 0000 per annum. They can choose to cover a lower level of their income, resulting in a lower monthly premium.

Deferment periods

Income payments can begin after 4, 8, 13, 26, 52, 56,104 or 112 weeks to dovetail with existing sick pay arrangements and other policies, e.g. Mortgage Payment Protection Insurance. The longer the deferment period the lower the premium.

Termination age

Your clients will be required to choose a termination age at which time the policy will cease. This will usually be their intended retirement age however they can choose any age between 50 and 70.

Limited payment term

Your client can choose to limit their claim period to an aggregated maximum of 5 years. Once 5 years benefit is paid the plan will cease. This will substantially reduce their premiums, but hey should consider what financial plans they would make should any incapacity last longer than 5 years.

Guaranteed Insurability

A Guaranteed Insurability option which allows your client to apply to increase their benefit (within specified limits) without further medical underwriting, in the event of a house move, home improvement, getting married, forming a civil partnership, becoming a parent, or receiving a significant salary increase on attainment of a professional qualification.

Other key benefits of Income Protection Solutions

Health Solutions premiums are calculated from our base rates which depend on the individual’s age and the area of the country that they live (from these base rates the selected option increase/reduction is applied).

• Linked benefits for recurrence of the same incapacity within 12 months.
• A Career Break option allows your clients’ cover to be reduced to houseperson level, which may be restored to its original level within five years.
• Cash payment for hospital stays of over seven consecutive nights (up to a maximum of 90 nights) during the deferred period.
• Rehabilitation Benefit and Proportionate Benefit helping to provide compensation for reduced earnings.
• A lump sum benefit on death during first 12 months of a claim.
• Retirement benefit if receiving payments for the 12 consecutive months before end of policy.
• Waiver of premium while in receipt of payment.
• Up to £1,250 a month available for full-time housepersons, part-time workers and unemployed persons.