Income Protection
Worried about your finances if you had to take time off work due to illness or injury? Income Protection can help provide the financial stability you need until you can get back on your feet.
In 2022, 185.6 million working days were lost due to sickness or injury 1
Helped Protect Over 50,000 Families
What is Income Protection?
Income Protection provides up to 60% of your annual salary, paid in monthly instalments, if you’re unable to work for medical reasons, helping you to stay on top of your bills until you’re well enough to return to work.
For example if a broken leg stopped you from working, or you were signed off for an extended period due to mental health, you wouldn’t have to dip into your savings to cover the bills once your sick pay ran out.
Why is it important?
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Financial Stability
Income Protection can supplement or replace your sick pay, for a set period or until you retire or the policy finishes, helping to cover the bills while you get back on your feet. This is especially relevant for freelancers or those without sick pay.
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Flexible Cover
Choose cover that suits your needs, whether that’s a short-term payout for a max period of 1-5 years, or long-term cover which lasts for as long as you need – until you return to work, retire, or your policy ends.
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Mental Wellbeing
Unlike Serious Illness Cover, Income Protection can help to supplement or replace your sick pay if you’re signed off work due to mental health issues such as stress, depression or anxiety.
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Recovery Support
Afford yourself the space and time you need to focus on recovery so you can get back to work sooner.
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Credit Protection
Because your income protection payouts can help you cover your monthly outgoings, you are less likely to miss payments which will have a knock-on effect on your credit score, something which could impact your life for years to come.
What Does Tom Income Protection Cover?
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What’s usually covered?
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Income Protection will cover most illnesses or injuries which stop you from working or collecting your salary. You can usually claim as many times as you need to while the policy is running, which can be anywhere from 2-5 years, or up until you retire.
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What’s not covered?
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Income Protection will not pay out if you lose your income due to resignation, redundancy, or dismissal – it only covers illness and injury. In addition, there may be certain exclusions included in your policy due to pre-existing conditions, but this isn’t always the case, and your advisor will make these clear to you.
Dads know best
Don’t just take our word for it. Hear from some of the dads just like you who chose to protect their families’ financial futures with Tom.
Manage your policy from our app
You can now view and access your policy documents in one place, any time, anywhere. Our Tom app helps keeping on top of your insurance super simple. Manage your payments, learn about our other products and get in touch at the tap of a button.
Three steps towards financial peace of mind
- Fill in the form
It’s just a few questions, no confusing financial jargon, and you’ll be done before the kettle’s boiled. Once you’re ready, just hit ‘send’. - Talk to us
Expect a call. Not from a robot, but from a real person who’s here to help you find the right cover for you and your family. - Relax
Let’s be honest, you’re a dad & you’ve got loads on. So we’ll handle the tricky stuff while you get on with your day. Simple, huh?
If you’ve got questions, we’ve got the answers.
If you’ve got questions, we’ve got the answers.
Income Protection FAQ’s
What is Income Protection?
Income protection is an insurance policy that will pay out a monthly tax-free sum if you are unable to work due to illness or injury. The money you receive each month can be used to pay bills, cover your rent or mortgage, buy groceries or fund medical bills to help ensure you can continue to live comfortably while you recover. Policies can last a few years, or run until you retire, and can flex around your needs and/or budget.
What’s the difference between Income Protection and Serious Illness Cover?
While both cover illness and injury, Income Protection (IP) will typically cover most illnesses or injuries which stop you from working, while Serious Illness Cover (SIC) can be more restrictive, and usually requires you to be diagnosed with or suffering from a life-threatening illness. SIC will also pay out one single tax-free lump sum upon diagnosis, while IP will continue to pay out month-on-month for a pre-agreed term or until you are able to return to work.
How is Income Protection different from Health Insurance?
Unlike Health Insurance, the monthly pay-out you receive from your Income Protection Insurance can be used to cover any expense, not just medical bills. Each month, you will receive a portion of your pre-tax salary into your bank account, which is designed to help you maintain your lifestyle while you are too sick or injured to work.
Why can’t I receive 100% of my salary?
While the monthly sum you’ll receive is tax free, some money will be deducted to account for state benefits you would be able to claim. And while you won’t receive 100% of your salary, you will receive approximately 60% (on average) of your pre-tax salary.
How much does it cost?
Income Protection can vary in price depending on how much cover you’re looking for, how quickly you’d like it to start paying out, and how much of a risk you are to insure (usually calculated by age, health and lifestyle). That said, we pride ourselves on our ability to work with our customers to find the right cover at the right cost to suit your needs.
References
[1] ons.gov.uk