Short Term Income Protection

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Most of us, particularly in uncertain economic times, operate on very tight budgets. Trying to stretch what may be your limited monthly disposable income to accommodate some short-term income protection insurance may not seem to be an immediate priority.

Yet a policy of this type could help you avoid serious financial difficulty in the unfortunate event you lose your income due to accident, sickness or involuntary unemployment.

Life without an income

Many people these days have credit of some sort. Mortgages, bank loans for home improvements, car loans and credit cards - many of us have such monthly repayments to meet and rely on our monthly salary to meet these.

We may not like to think about what could happen if we were unable to meet those repayments but the reality is that you may very quickly start to see arrears building up and even pressure of repossession and recovery action if you are unable to maintain your payments.

This is where short-term income protection can play its part. It is a type of policy which is designed to offer you a replacement income should you be made redundant or become unable to work due to an accident or illness.

Income protection benefits

You will have to have held the policy for 120 days before any unemployment claim can be made and claims will not be accepted for any serious pre-existing medical condition (conditions which you were aware of prior to taking out the policy) or if you were aware of impending unemployment. If you are self employed, to be eligible to claim, you will need to permanently cease trading.

As with all insurance policies, significant exclusions and limitations apply and it is important that you read the terms and conditions of this policy to determine if these apply to you and for full details of the cover. This will also help you understand the level of protection that this product provides.

Our policy offers:

• each month, it can pay up to £1500 or 60% of your gross monthly income which ever is the lesser;
• you can choose the length of time you have to wait prior to benefit starting, (30, 60, 90 or 120 days). Typically the longer the wait time the lower your premiums will be and there's even a 30 day waiting option which will backdate payments to day 1;
• you may be eligible for benefit for up to 12 months;
• ‘back to work' support and help with CVs is available.
  

Eligibility

To be eligible for short-term income protection you will have to be in full time employment or self employed for at least the past 12 months. You should be aged between 18 and 65 and be resident and working in the UK the Channel Islands or the Isle of Man.

Peace of mind

Having a regular source of income coming in each month provided by short term income protection could allow you to maintain your lifestyle leaving you free to concentrate on getting better or looking for another job. Spending a few minutes browsing our policy documentation may be a good investment of your time!