Is income protection worth it?
We answer top questions on income payment protection insurance in the UK
By Melissa on October 10, 2021
With the official end of the UK’s furlough scheme last month, many Britons have been left wondering and worried about their jobs and income security. If you believe or suspect you might be at risk of unemployment now, then you may be asking yourself if income protection is something you should be considering.
If you’re on the fence, we cover some of the basic questions around employee income protection insurance and explore if income protection insurance is truly worth it.
What types of income protection insurance are there?
There are many types of income protection like disability income protection insurance which gives you salary protection in case you can't work due to an illness or injury. You can get income protection insurance depending on what you need, can afford and it’s usually a choice between short-term and long-term income continuance cover.
Short-term income protection
A short-term income protection insurance policy can be more cost-effective than a long-term income protection plan albeit less robust. It’ll typically cover you for up to a year or 18 months (some even up to five) and has usually included accident, sickness and unemployment cover; however, since the pandemic, many providers have taken redundancy cover out of their policies, so this is something to bear in mind.
Long-term income protection insurance
A long-term income protection insurance cover will, of course, be more expensive but more comprehensive, and can cover you until you can work again, retire or until the cover expires. The longer the benefit period, the pricer your cover will be. You could get long-term income protection for over 65 years of age! Most long-term income payment protection insurance will have a minimum term period of five years.
At Monese, we offer accessible and affordable Bills Protection for UK-based customers on all paid plans. While not the same as income protection, we do help those who are employed by covering the recurring bills listed and paid from their Monese account in case of accident, sickness and involuntary unemployment. It also includes a billing in hospital stay benefit for both self-employed and employed UK-based customers.
Can I get income protection online?
While you probably won’t be able to buy income protection insurance online as you’ll need to be assessed by the provider first, you can certainly shop around and get an online income protection quote from different comparison websites. You can buy insurance directly from insurers or pay for an independent income protection broker, financial or insurance advisor to help you settle on the best salary protection plan and deal for you.
If you opt for our affordable Bills Protections, rest easy knowing it comes automatically built-in to your Monese app when you sign up to any of our paid plans, which you can do straight from your phone online! No need for any time-consuming paperwork or managing policy documentation via email or post to start your insurance cover.
What’s the income protection waiting period?
Income protection insurance waiting periods can be anywhere from a week to a year, depending on the policy and provider you pick. But when you choose our Bills Protection, you get insurance that starts the moment you sign up for an Essential, Classic or Premium plan!
How do I claim income protection insurance?
To claim personal income protection insurance, you’ll usually need to contact your provider by phone and provide personal details like your name, date of birth, policy number and reason for your claim. Then, you’ll likely need to gather and send paperwork as evidence of why you can’t work, proof of income, even birth certificate.
At Monese, making a claim under Bills Protection is much easier. You can make a claim with just a few taps in the app with just your phone:
Step 1: Open your Monese app and head to the Explore tab on the home screen.
Step 2: Tap on Bills Protection under Insurance then hit ‘Start a claim’.
Step 3: Follow the steps to quickly complete your online form and submit your claim.
It’s that simple.
Who are some income protection insurance providers?
Leading personal income insurance providers in the UK include:
Who offers the best income protection?
Picking the best salary continuance insurance provider will truly depend on your needs, budget, lifestyle and occupation.
First, decide if you’re looking for a short or long-term personal income protection plan to help you narrow down companies. Research the different terms and conditions, policy details and waiting periods of each provider, any income protection premiums you’ll need to pay and even consider how risky or secure your job is. Be sure to get income insurance quotes from the providers on your short-list. These factors should help you choose the best income cover for you.
What’s the average cost of income protection insurance?
The average income protection cost will vary depending on a number of factors including your age, health, job, lifestyle, hobbies and more. For example, according to Drewberry, a 30-year-old male heavy goods driver in the UK will pay an average of £35 pounds a month for long-term protected income insurance or £20 for short-term salary protection cover – keeping in mind this is excluding insurance against redundancy as all UK insurers have withdrawn from the market since Covid-19.
So, income protection – is it worth it?
While some form of insurance to protect your income may be worth it, particularly during these ongoing uncertain times, the truth is it can be quite costly to afford – especially for something you may never use and benefit from and leaves out involuntary redundancy insurance! Remember, you won’t get your money back if you never have the need to make a claim.
That’s why, at Monese, we offer much more accessible and affordable built-in Bills Protection designed for those who can’t commit to a full income protection insurance scheme.
With our Bills Protection, you’re covered in case you can’t work because you’re sick, lose your job or need to stay in hospital. Insure expenses and regular bills paid from your Monese account like rent, groceries and utilities for as little as £1.95 a month. It’s a safety net without the hassle if you’re worried about the future of your employment or ability to work.
To learn more about our insurance feature, including Purchase Protection insurance so you can shop in-store and online with ease, check out our FAQ articles. Don’t forget to let us know what other features you’d like to see in your app by dropping us a line at firstname.lastname@example.org or on Facebook, Instagram or Twitter.