Our Income Protection insurance offers you and your family flexible and affordable cover against loss of your regular income due to sickness or injury
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No matter what your line of work, whether you are employed or self-employed, our Income Protection plan can help you and your family cope if an absence from work due to illness or injury should mean your regular income was lost.
Protecting your income means you can go on meeting those monthly household bills without the need to dip into your savings or running up costly debts. Shepherds Friendly’s Income Protection provides you with cover up to the age 70 and gives you the choice of a short-term option of 2 years cover or longer as required. Protection can start from day 1 of any absence and offers you invaluable flexible cover that provides a regular tax-free income throughout any period of absence from work. Premiums start from as little as £5 a month* and the plan offers you the flexibility to tailor it to meet your specific needs and circumstances.
Who can apply for Income Protection?
Anyone from age 16 who is a UK resident and has been registered with a UK medical practice for at least
three years. You can apply for Income Protection no matter what your profession and whether you are employed
or self-employed. Cover can start from as little as £5 a month (our minimum premium) and needs to last for
at least 5 years (our minimum term).
You can tailor your plan to suit your particular circumstances and you can even choose a short term Income Protection option where benefits are payable for a maximum of two years for each claim to help you reduce your monthly premiums if you wish.
We will consider your application regardless of your line of work. We do not base your premiums on your
occupation meaning your premiums will not be set higher should you work in what is seen as a riskier job.
Each application is considered on an individual basis and acceptance is based on your specific circumstances.
If you are employed, you can choose to cover up to a maximum of 70% of your regular gross income. If you are
self-employed you can cover up to 70% of your net profit.
You can select to include indexation cover where your premiums and level of benefits automatically increase each year to ensure you stay in line with inflation (based on the Retail Prices Index or RPI) and you can choose, when taking out your plan, to limit the benefits period to two years to help you control your monthly premiums.
If you do have to make a claim, our aim will be to help you get better and return to work. If we think we can support you with your recovery by helping to pay for additional services or advice, such as physiotherapy or counselling, we may well be able to fund a referral to one of our nominated rehabilitation providers.
If following any period of absence, you are only able to return to work on a part-time basis or on restricted duties or if you need to return to work in a different occupation, you may still qualify for what the plan describes as a Working Persons Benefit.
A House Persons Benefit may also be available should you become unemployed, a student or a house person and are subsequently incapacitated due to illness or injury.
Our Income Protection cover is designed to be flexible so you can tailor it at any time to suit your
changing circumstances. The plan’s guaranteed insurability option allows you to increase your level of
cover at times such as marriage, the birth of a child or taking up a new job with increased income.
You have the option to cover up to an extra 20% of your income provided you stay within the allowable 7
0% of your gross income.
The plan also includes a waiver of premiums feature meaning that, should you need to make a claim, no further premiums will be collected from the end of your agreed deferred or waiting period (plus one month) until you are able to return to work.
The deferred period is the length of time you choose to wait after you become ill or suffer an injury
before you start receiving benefits from us under your plan. You can choose a period from Day 1 through
to 52 weeks when you take out your plan and you can adjust this during the term of your plan.
Your chosen deferred period may depend on whether you are likely to receive some income from your employer during your absence from work and how long this might last. If you also feel you have sufficient savings to see you through for a period of time you could factor this in to your decision. Typically, the longer the deferred period you decide on, the lower your monthly premiums might be.
You will receive all your monthly benefits tax-free and you will go on receiving these as agreed in your plan until you return to work, no matter how long this might take.
If you have paid your premiums for 12 months and you decide to stop working, or are forced to stop working for a period of between 3 and 24 months, we will suspend your plan until you return to work. During this time, you will not have to pay any monthly premiums.
The premium you will pay monthly will depend on the level of monthly benefit you feel you require
and the deferred or waiting period you select. There are no increases in premium for higher-risk
occupations and your agreed premiums will not increase after medical underwriting has taken place.
The plan also guarantees that there will be no increases in your premium from the ages of 16 to 30
or from 52 to 70.
It’s worth noting whilst the plan has no increases during these periods, the premiums for all plan holders could be reviewed at our discretion. We don’t expect this to happen very often during the term of your plan, but we reserve the right to do this and more information can be found in our Terms and Conditions.
We operate an interactive underwriting process for all applications meaning you could possibly receive a same-day decision on your acceptance, should no medical interview be required. If we do feel we need any further information on your medical history, booking your medical interview online can be done quickly and easily.
When taking out your plan you can choose to have your premiums and your level of benefits increased in line with the Consumer Price Index to help cover the rising costs of living. A waiver of premium is also included in the plan, meaning that no further premiums will be collected from the end of your deferred period (plus one month) until you return to work.
Should you need to make a claim you can simply contact our Member Services team on 0333 305 9239 and they will explain the process and send you a claim form. They will require evidence of your earnings and your state of health.
You can get a quote online quickly and easily by using the quote button below. You can then either apply for your plan online or you can call a member of our Member Services team on 0333 305 9239 for help or to discuss any questions you may have with regard to your application.
How to buy Income Protection: You can open a plan online quickly and securely by clicking the button below:
Alternatively, if you would like assistance in applying or would like more information regarding the plan, you can speak to a member of our Member Services team by calling 0800 195 2170
IMPORTANT THINGS TO CONSIDER
*Male aged 32 with a waiting period of 26 weeks, £258 of cover, premium of £5
All references to taxation are to UK taxation and are based on Shepherds Friendly Society's understanding of current legislation and H M Revenue and Customs practice which may change in the future. For our With Profits plans investment growth is by means of bonuses, the amount of which cannot be guaranteed throughout the term of the contract. Please ensure that you read the full terms and conditions of this plan which are available from your financial adviser or by contacting us directly.