At Lakeland Finance we endeavour to help our customers protect against the unforeseen in life, for example if you became ill or had an accident which meant that you could not work, for the majority of people it will mean they would struggle to pay their business or personal mortgage as well as other essential bills. Life is full of uncertainties and a good way to protect against this is to consider income protection.
Income protection payouts are usually based on a percentage of earnings: typically 60% to 70% is the norm and payments are tax-free. Income protection policies only pay out once a pre-agreed period has passed, generally ranging from 1 to 12 months after a valid claim. The longer the 'deferral' period you choose, the lower your premiums. The typical default deferral period which is the time period between making a valid claim and payments commencing tends to be 13 or 26 weeks.
Most income protection providers report paying high proportions of claims made to them. For example in2012, insurance giant Aviva published that it had paid 93.5% of income protection claims whilst LV paid 88.4%.
Not many employers support their staff for more than 6 to 12 months if they're off work due to long term illness or accident. Given the low level of state benefits available, everyone of working age should consider income protection. If you would like to know how income protection works and the benefits of having this protection in place then please contact us and we will be more than happy to discuss your requirements in further detail.