What does income protection normally cover

a4331085

backdrop
The company i work for has recently announced plans to make 30 people redundant in my area which has made me aware that i could not realistically survive financially on what my partner earns + state benefits. I have been informed that i am not in the affected pool so my job is safe as they don't make graduates redundant (i'm classed as a graduate for 12 more months). The redundancies are due to a reorganisation and efficiency drive. I know all the companies state that if you know of any impending redundancies or the company is undergoing a restructure then you can't get insurance , or everyone would just wait until they've been told before getting it.


My question is really, what does income protection usually cover, as a lot sell for the below

1) redundancy
2) accidents & injury

Basically, i was to get cover for just potential redundancies (i have no reason to believe they will make anyone else redundant in the future) or because i lose my job for other reasons, e.g. failing an exam (i'm a trainee accountant)


Any advice would be appreciated

kingstreet

You're talking about unemployment cover, not income protection. This is a short-term product, underwritten at point of claim with the benefit paid for either upto twelve or twenty-four months. Accident and sickness cover can also be bundled with this.

It provides a monthly benefit if you lose your job through no fault of your own or are unable to work due to accident or illness. Failing an exam could be construed as your fault, so you need to check with any potential provider exactly what they would, or wouldn't cover.

Income protection, better known as permanent health insurance is underwritten at inception and pays out in the event of accident or illness, for a period which ends when you are fit enough to return to work or the end of the policy term, whichever is the shorter.

InsideInsurance

Income protection covers two different buckets of products.....

1) ASU (Accident, Sickness and Unemployment) - Cover can be for all three or AS or U. This is typically budget short term policy normally with a maximum of 1 year payout though a few do 2 years payout. The maximum limit for the monthly instalments is not particularly high

2) PHI (Permanent Health Insurance) - it is a full fat product but only covers the AS risks. Unlike ASU however PHI continues to payout until your designated age (normally your planned retirement age). It will also allow a higher monthly limit (subject to your salary)

a4331085

Thanks for the information, appreciate it ;-)