Defaqto 5 Star Rating

Why Buy Income Protection Insurance?

Defaqto 5 Star Rating

Understanding why it’s important to protect your income could help you to safeguard your financial security

Whether you are employed or self-employed, it is important to consider how you might be able to cope with all those monthly bills if illness or an injury meant a lengthy period away from work.

You may receive some sick pay from your employer or you may have some savings to fall back on. But how long will these last for, and will they be enough to cope with mortgage payments, rent, energy bills, essential grocery shopping and all those other items that add up each month?

Despite the potential repercussions of not having a protection policy in place, Income Protection remains one of the most misunderstood insurance plans available.

Are you risking your income?*


Income protection policy icon

Have an Income Protection policy

Sickness or injury icon

have had to take a month or longer off work due to illness or injury

Sickness or injury icon

have had to take 3 months or more off work due to illness or injury

Sick pay icon

receive 3 months or less sick pay from their employer

No sick pay icon

receive no sick pay at all

Savings icon

only have up to 3 months income in savings

Less than month icon

have less than one month’s income in savings


Misconceptions*


Willing to pay icon

are willing to pay for Income Protection

Too expensive icon

believe it is too expensive

Median estimate icn

is the median estimate for Income Protection payout rates

Closer icon

is closer to the actual figure

Self-employed*


Self employed icon

of self-employed have Income Protection

Self employed savings icon

of self-employed have 3 months or less income in savings

Self employed savings icon

of self-employed have less than 1 month income in savings


When you take out an income protection plan you have peace of mind that you can look forward to a monthly tax-free benefit you can go on receiving until you are well enough to return to work, or even up until retirement.

You can also benefit by adjusting your levels of premium, benefits and deferred period before payments start in order to control the costs to suit your changing circumstances.

*All figures are from the Drewberry Insurance Protection Survey 2015

How to buy Income Protection: You can open a plan online quickly and securely by clicking the button below:

Alternatively, if you would like assistance in applying or would like more information regarding the plan, you can speak to a member of our Member Services team by calling 0800 195 2170


IMPORTANT THINGS TO CONSIDER

  • If you stop paying premiums under this plan, your benefit will cease.
  • If your income increases and you do not review your benefit level, you may not have sufficient benefit to meet your needs when you make a claim.
  • If your income decreases and you do not review your benefit level, you may not be able to claim the full amount of benefit you applied for when the plan started, or you may only be entitled to House Persons Benefit if you are unemployed at the date of incapacity.
  • If you cancel your plan, you will not receive any money back.
  • Benefits received from this plan may affect your entitlement to any other benefit.
  • If you do not give us accurate and honest answers about your health and lifestyle, we may not pay the benefit in the event of a claim.

*Male aged 32 with a waiting period of 26 weeks, £258 of cover, premium of £5

All references to taxation are to UK taxation and are based on Shepherds Friendly Society's understanding of current legislation and H M Revenue and Customs practice which may change in the future. For our With Profits plans investment growth is by means of bonuses, the amount of which cannot be guaranteed throughout the term of the contract. Please ensure that you read the full terms and conditions of this plan which are available from your financial adviser or by contacting us directly.