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The different Income Protection options available

Although the concept of income protection is simple, there are various types of product in the market:

Traditional Income Protection - for clients in less risky jobs

Income Protection

Think office workers or professional occupations (such as accountants) where the risk of occupational injury or illness is low. The price doesn’t increase with age and the insurance keeps paying out until your client is well enough to go back to work – no matter how long it takes.

This is our standard Income Protection.

Specialist Income Protection – for clients in riskier jobs

Personal Sick Pay

Aimed at clients in riskier jobs who are more expensive to insure, like construction workers, nurses & the self-employed. The price increases with age (‘age-banded’ or ‘age-costed’ premiums) making it more affordable for many clients.

This is our Personal Sick Pay.

Cover options

Level Income Protection cover

  • The amount of cover is fixed and won't change
  • It won't keep up with inflation and will buy less in the future

Inflation-linked Income Protection cover

  • The amount of cover and premium go up (each year) in line with inflation. The premium goes up by inflation multiplied by 1.5
  • We use the Retail Prices Index (RPI)

Budget Income Protection

  • The maximum claim period is 12 months (guaranteed premiums only) or 24 months (guaranteed and reviewable premiums) and your client's policy will continue (we won't cancel it after a claim has been paid unless you're a homemaker)
  • Premiums can be significantly cheaper than full Income Protection

Types of premiums

Guaranteed premiums

  • Your client's premium is fixed and won't change unless they choose inflation-linked cover
  • If inflation-linked cover is chosen then the amount of will go up in line with inflation (RPI), and the premium goes up by inflation multiplied by 1.5

Reviewable premiums

  • The premiums won't change for the first five years and then they can be reviewed every year, based on a number of assumptions
  • Once we've reviewed a premium we guarantee we won't change it again for 12 months

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LV=, County Gates, Bournemouth, BH1 2NF, UK