Short term Income Protection insurance is designed to cover you if you are unable to work for a period of time, which is usually between 6-12 months due to sickness, redundancy or an accident which prevents you from working.
This policy will provide you with a regular income while you are unable to work. The payout will continue up to the point where you either return to work, you retire, the policies agreed term period comes to an end or you pass away.
Short term Income Protection will give you the financial support required should you find yourself in a position where you are either out of work or unable to work due to ill health. This policy is a great addition to have in place once your sick pay or any other insurance policies expire- Consider an Income Protection Policy today.
How Does It Work?
If you have a short term Income Protection policy in place and you find yourself out of work or simply unable to work due to sickness or an accident both you and your income would be covered. Once a claim has been submitted by the policy holder there would be a waiting period known as the deferred period before the monies can be released. The longer the agreed deferred period, the lower your premiums will be. The payout will then be received by the policy holder on a regular basis tax free.
There a number of features available with short term Income Protection, and these include;
- Any payout made after a claim has been submitted will be paid to the policy holder tax free
- The policy will provide you with cover should you be unable or out of work for a period of time
- You will receive regular payouts if you are unable to work, either weekly or monthly
- You will be covered for any accidents, unemployment or disabilities that prevent you from working for a period of time
- There are optional policies available to ensure you have the right cover to suit your circumstances, and these include- Age related policies, guaranteed policies and re-viewable policies
What Are The Benefits?
There are a range of benefits that are associated with this type of policy and these include:
- Peace of mind for the policy holder during the short duration that you find yourself out of work because you will be covered financially which means bills can still be paid
- There are a number of policies available to ensure you the cover you need
- You will still have a regular income for the length of time you find yourself out of work
- Payouts received by the policy holder are made tax free
- A claim can be made as many times as the policy holder wishes
- Reassurance from the policy because your cover will always be in place and continue for as long as you pay the premiums