What is Income Protection? 

Income Protection is a type of insurance that pays an amount when you are unable to work more than 10 hours per week solely due to illness or injury as it is designed to pay a regular tax free income if you are unable to work due to sickness or accident. Which means it pays you a tax-free monthly income during periods when you are unable to work due to long-term sickness, accident or injury. Income protection insurance that will pay a regular income to a person if they are disabled by a sickness or accident. The maximum benefit covered is usually 75% of gross income after business expenses. 

Tax and Income Protection

Premium can be tax deductible if the person is normally eligible for a tax deduction for their superannuation contributions. You can cover up to 75% of your net monthly income to a maximum of £2,000 and the tax free benefits are paid directly to you. Age banding offers exceptionally low premiums. For example, a self-employed person as benefits are not taxed if within a person's Pension RBL. Lump sum tax applies if benefits are paid to non-dependants. 

Benefits of Income Protection

Monthly benefits are given if due to some cause as sickness, accident or unemployment you are not able to work for long and these benefits are tax-free. It is your choice of deciding how soon and for how long this income is paid. You can also claim for hospitalization.

The option to increase the amount of your Income Protection Benefit if your earnings increase in future and option to select a low cost Income Protection Benefit plan. 

Why to choose an Income protection

Why to choose an Income protection is main question as it can provide you with a monthly income if you are unable to work due to most types of illness or accidental injury, to help maintain your standard of living. By having a Income protection you can receive a tax-free income until you are well enough to return to work, or until you retire if you do not recover.

By Having Income protection you get a fixed monthly income paid if you are unable to work due to illness or injury. Premiums start from just £6 per month and benefit can be payable up to retirement.