Income Protection top five FAQs
Here are the five most popular questions we've been asked about Income Protection.
If you have a question that is not answered below you might like to search our interactive FAQs .
Is my benefit tax-free?
Yes, under current tax rules, as long as the policy premiums come from a bank account that is in your name alone, or in the name of you and your spouse/partner. This is based on our understanding legislation and HM Revenue & Customs practice, which can change.
What is Income Protection?
Income Protection is designed to pay you a regular income if you are unable to work due to sickness or accident.
Do I get any money back if I don’t claim before the end of the policy?
No. The policy is designed to pay out only if you're unable to work due to accident or sickness during the term of your policy. Once your policy has reached its end date, your cover stops, and you won’t get anything back.
Do you take dividends as income?
Yes, as long as we are happy that they are paid from current profits, have been earned by you and will stop if you are unable to work. But this does only apply to company directors.
Do you cover average income over more than 12 months?
Yes, if you're self employed we'll usually take an average of your income over three years. If you're employed we'll usually take an average of your income over the last year.
However, we'll try to work with you and may agree to look at longer or shorter periods. For example we might do this if we can see that your income varies considerably due to the nature of your business, or if you've suffered a deteriorating illness that finally resulted in you going off sick.
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