What can this policy cover?

It pays you a benefit if you can’t work due to ill health or accidental injury, and the benefit starts after an agreed period of time, called a deferred period. You can see how much you could receive by using our maximum benefit calculator. Income Protection Options doesn’t pay any claims made due to redundancy or unemployment.

What does Income Protection Options do?

Income protection pays out if you can't work and suffer a loss of earnings due to ill health or accidental injury. In these circumstances Income Protection Options will pay 55% of your gross earnings, up to a maximum benefit amount of £240,000 per year (£20,000 per month). The policy doesn’t pay an income if you're made redundant or lose your job.

If you're not sure how much cover you can apply for, our maximum benefit calculator can help you find out.

When could I receive the income, how long could it last?

The deferred period is the amount of time that must pass between your first day off work and the point at which you can start to receive benefit payments.

The longer the deferred period you choose, the lower your premiums will be. So if your employer provides sick pay for a period of time, or you have a 'rainy day' fund, you could delay when you want your benefit to start by selecting a longer deferred period. You can choose from a minimum of 4, 8, 13, 26, 52, 56, 60, 65, 80, 84, 92, 104, 108, 112, 130 or 156 consecutive weeks.

  • Choosing a longer deferred period is a good way to keep your premiums down, but still have the peace of mind there's an income in place if you're ill for a long period of time.

Income protection policies are designed to last for as long as you're in employment. Because retirement plans vary, you decide at what age you'd like your policy to end. Once it's set up, it'll remain in force as long as you keep paying the premiums. The policy has no cash–in value at any time.

Would the income affect my benefits?

Any income you get from the policy may affect means–tested benefits. If you're unsure what this would mean for you, contact your financial adviser. If you don't have a financial adviser you can find one near you at www.unbiased.co.uk.

Providing your premiums are paid from taxable income, the benefit we pay will be tax-free under current tax rules, although this may change in the future.

What else could this policy do for me?

It's important to us that you have the best possible chance to make a full recovery. To help you, we'll include additional benefits in your Income Protections Options policy at no extra charge.

  • A hospital benefit of up to £75 per night if, due to the illness or injury you're claiming for, you need to spend time in hospital for more than 7 consecutive nights during the deferred period. We’ll pay this for a maximum of 90 nights.
  • A back to work benefit. We may still pay you a percentage of your benefit if, on returning to work, the illness or injury you claimed for restricts your duties and you earn less.

In our experience, working with customers at the start to their incapacity is more likely to result in a successful return to work. That’s why we’re proud to offer our customers access to our early intervention team. The team are on hand to help you find the support services you need to help your recovery and they can start supporting you even if you’re not expecting to receive benefits for a few months.

What’s not included in Income Protection Options?

It's important to us that you're confident about the policy you have in place, and that you understand what it will or won't pay for.

Income Protection Options doesn't pay an income if you're made redundant or find yourself unemployed for any reason other than ill health. If you're unsure about how to find the right income protection cover for your circumstances, then contact your financial adviser. If you don't have a financial adviser you can find one near you at www.unbiased.co.uk.

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