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Income Protection

Our commitment to protection insurance customers: 

During the COVID-19 crisis and the unprecedented demands on our health system, the Protection insurer members of the Association of British Insurers (ABI) are offering support to all their customers who may be affected by the impact of Coronavirus when making a claim on a life, critical illness, or income protection policy and reducing the burden on the National Health Service (NHS).

You can read more on these commitments here. 

Frequently asked questions on Income Protection Insurance: 

Income protection policies, whether provided by an employer to employees or bought by individuals, typically cover short and long term absence from work due to ill health or injury, and have a waiting period before money is paid out. Such policies are unlikely to cover people self-isolating as they probably won’t be off work longer than the waiting period and may not be too ill to work.

What products will pay out when I cannot work due to illness? 

  • Income protection and sick pay-style products are designed to pay a benefit to replace a loss of earnings if you are unable to work due to illness or injury for the length of the policy, or until you can return to work, depending on which comes first.
  • Typically, there is a waiting period before the policy kicks in. The waiting period is typically between 1 to 12-months, often depending on your individual circumstances and budget. There are also short-term policies available that provide cover from day 1 of absence.

Will insurance cover pay out if I self-isolate?

  • Insurers will pay out under the terms of their contracts, but policyholders should be clear on the terms of their coverage. Self-isolation is unlikely to be covered for income protection policyholders unless you have experienced loss of income if you are out of work because you are ill.
  • For claims to be paid the policyholder needs to meet the definition of incapacity. Policies will vary and it is important to check with your insurer or adviser.
  • Self-isolation which is not medically advised is unlikely to be covered unless symptoms are severe and continue beyond the waiting period.