Positive news as protection policy uptake increases

It seems the message is getting through to people about the importance of arranging protection policies. Recent figures from technology provider Iress7 show that in Q1 2019 income protection sales via its software increased 50%. This is encouraging news indeed; and clearly shows that more people are aware that they need to protect their financial future by putting plans in place which could provide a lifeline if the unexpected should occur.

You may have sufficient funds to sustain you for a short period of time, but you could find that paying the bills soon becomes a problem. Protection policies are designed to pay out if you’re unable to work and earn money due to injury or illness, and, in some cases, forced unemployment. You can usually claim the maximum amount of your net monthly earnings after tax, minus any state benefits you may receive. This could be around 65% of your gross earnings and it’s usually tax-free.

Following your chosen deferred period, policies will pay out, typically between four and 52 weeks, and can continue until you return to work, or the policy expires at the end of a fixed period.

7Iress, 2019

It is important to take professional advice before making any decision relating to your personal finances. Information within this page is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.

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