How salary protection insurance can help you While opting for such a term insurance policy, you can choose how to divide the total sum assured amount between the two components (regular income and lump sum) at the time of buying the policy. Those who are not investment-savvy or want to choose lower but guaranteed returns can opt for the term policy with a regular income payout option. Buyers, however, must know that it is a term policy without any maturity benefits. Only the nominee receives an assured death benefit—a lump sum amount—in the case of the policyholder’s demise. Akshay Dhand, the Appointed Actuary at Canara HSBC Life Insurance, said as per the terms of the salary insurance...
Continue reading...
The question to ask yourself is: if you were too unwell to work, would you be able to keep up with the cost of life? The answer to this will tell you whether or not it’s worth getting covered. Does income protection cover me if I’m made redundant? No, income protection insurance only covers you for loss of earnings that are brought about by medical reasons – mental or physical, illness or injury. Although redundancy is something that can also cause unexpected financial hardship, income protection is not the right insurance product to protect yourself against this risk, because it won’t pay out in that circumstance. Will my income protection insurer pay out? If you’re unable to work for...
Continue reading...
Should I get group income protection insurance? Group income protection is an insurance policy offered by some employers to their staff. It pays out if an employee’s wellbeing deteriorates to the point at which they can’t work. If you’re an employer, here’s what you need to think about if you’re considering group income protection insurance. What is group income protection? Group income protection is insurance that gives employees financial support if they are off work for a long time due to illness or injury. It can also cover employers against the cost of temporarily replacing the absent employee. These policies often include rehabilitation services to help...
Continue reading...
Only 9% of UK adults carry some form of income protection – a figure that is significantly lower compared to those who have life insurance at 41% and private health insurance at 16%, a recent survey conducted by revealed. The not-for-profit consumer protection website added that the situation can pose a serious issue among workers given that very few employers in the country provide support to staff who are out for more than a year due to illness. “Millions of us have policies such as private health insurance and payment protection insurance, sold to us over the years by salespeople who convinced us we needed protecting,” the firm wrote in an article on its website....
Continue reading...
We recommend viewing our site with JavaScript enabled for the best user experience. David Thompson is chief executive of dg mutual, which provides income protection insurance to self-employed professionals. dg mutual is one of only 9 mutual societies that offer income protection in the UK; it has no shareholders but instead pays out all its profits to the members. Becoming self-employed is a big step to take, but it can provide many benefits such as freedom, intellectual fulfilment and flexibility. There are also financial benefits as some self-employed people earn more than they would as an employee. However, there are also higher risks and disadvantages if you are not prepared…...
Continue reading...
RnM newly added a research report on the Income Protection Insurance market , which represents a study for the period from 2020 to 2026. The research study provides a near look at the market scenario and dynamics impacting its growth. This report highlights the crucial developments along with other events happening in the market which are marking on the growth and opening doors for future growth in the coming years. Additionally, the report is built on the basis of the macro- and micro-economic factors and historical data that can influence the growth. The global Income Protection Insurance market has been comprehensively analyzed and the different companies that occupy a large percentage...
Continue reading...
We already know not enough people in the UK protect their incomes, with the past few months throwing this issue into sharp relief. However, this is an even greater concern for women, who are more likely to be underinsured in comparison to their male counterparts. Indeed, recent data from ActiveQuote shows that more than two thirds (70%) of income protection (IP) enquiries in April 2020 were from men [1]. Statistics like these are perhaps unsurprising and can be attributed to prevailing traditional stereotypes such as women historically being more likely to be a stay-at-home parent, working in lower paid jobs than their male peers, or taking less interest in their personal finances. All of...
Continue reading...
Six reasons to consider Income Protection insurance If you had to, could you survive on your savings alone? Most people couldn’t. 15% of Brits have no savings, and 33% have less than £1,500. When broken down by age, the picture for the young is particularly bleak, with 53% of 22–29-year-olds having no savings. So if you don’t have savings, what happens if you get ill? Income protection provides you with a safety net. If you’re struck down with a long-term physical or mental illness that stops you from working, income protection provides you with a monthly replacement income. Depending on the policy, this usually ranges from 50–75% of your income. Income protection is different from critical...
Continue reading...
"People are more likely to protect their homes, phones, or cars than their most important asset: their income," said Chris Pyne, executive vice president of Group Benefits at Unum. "But without a paycheck, they likely wouldn't even have these other assets." As for why people lack the protection, a third of workers (33%) say they're healthy and don't need it, 29% say they can't afford it, 11% don't see the value in it, and 10% don't know what it covers. Of those who had to file a disability claim within the past five years, 99% were glad they had disability coverage. Workers have a one in four chance of suffering a disability before they retire, according to the Council for Disability...
Continue reading...
This is an important message to the industry because it demonstrates that advances in underwriting processes in recent years, including tele-underwriting and sophisticated online application systems, has reduced the number of declined claims due to non-disclosure. Whether this a good message for consumers is a debatable point. Many people would hold that once they are accepted for insurance, their claim should be paid – the basis of the argument for non-contestability clauses, prevalent in the US. Others, taking a more jaundiced view of insurers, might be surprised that the claims paid percentage is so high. Either way, claims paid data needs to be positioned carefully with customers...
Continue reading...
