Income Protection explained

Income Protection FAQ

Use our Income Protection FAQ to find a common question that you would like to know about the product.

What is Income Protection?

Income Protection is insurance for your wage. It provides cover if you are unable to work and earn money due to an accident or illness. For more information, read our “What is Income Protection” blog 

Why would I need Income Protection?

We all know how important it is to insure our car, our mobile phone or our holidays. When doing this, we are ensuring that we are equipped to deal with situations that are out of our control, and are protecting ourselves from possible accidents.

By getting income protection, you are doing the same to your wage. Read our case studies  see how income protection can benefit individual people.

Who can have a simple Income Protection Plan?

To have a Simple Income Protection plan you need to be over the age of 16 and less than 59 years old. You must also have been registered with a UK Medical Practice for at least 3 years. If this is not the case for you, please call our Customer Services Department on 0800 526 249. The minimum term of the plan is 5 years, but benefits will not be paid beyond the age of 65 years.

Can I get Income Protection if I am self-employed?

Yes. Self- employed people are actually one of the most common groups to take out IP cover.*

How much will Income Protection insurance cost me?

Cover can start from as little as 17p a day*. Apply for a quote online and see how much you would pay.

How do you work out how much I would pay?

Premiums are based on the level of benefit you feel you’d need. You can choose to receive up to 70% of your income and select a waiting period of between two and 52 weeks before your benefits start to be paid.

How will inflation affect my premiums/benefits?

You can choose to increase your premiums and benefits in line with the consumer price index to help cover inflation.

Will I still have to pay my premiums if I am sick?

Waiver of premium is included in the plan, which means that we will not collect any further premiums from the end of your waiting period plus one month until you return to work, you are deemed fit enough to resume your normal occupation, or your plan ends. You can be excused from paying your premium during full months when you are ill and absent from work.

How long will I have to wait before I receive any benefit?

The benefit will be paid after your chosen waiting period. A waiting period is the length of time from when you become ill or have an accident, to the date when we start to pay sickness benefit. You can choose the waiting period that you want at the start of the plan, and you can change it at any time (but not if you are claiming under the plan) – 2 weeks, 4 weeks, 8 weeks, 13 weeks, 26 weeks and 52 weeks.

What happens if my circumstances change?

The plan is flexible, which means your level of benefit can be increased or decreased to suit your circumstances, for example a change of job. The waiting period can also be increased or decreased, as can the end date of the plan. You should tell us about changes to your earnings and/or employer’s sick pay arrangements to ensure that your correct benefit levels are maintained.

If you would like to increase your level of benefit, this will be treated as a separate plan and as such will be subject to the rates and conditions of the new plan at that time. If you become a house person your benefit will be limited to a maximum of £4800 per year. Before we make any changes, we will have a look at your request based on your circumstances at the time. We will look at whether there has been any change in your health, job or lifestyle since you started the initial plan.

What happens if I stop paying my premiums?

You will need to keep on paying your premiums if you would like to keep your entitlement to the plans benefits. We will not pay sickness benefit if you are in arrears with your premiums. If your plan is in arrears for three months the plan maybe cancelled.

Why choose Shepherds Friendly Society?

If you do decided to take a plan out with us, you can be sure that everything we do, we do it in the interests of our members, and only our members. We are not listed on the stock market or owned externally-our members are our owners. This means that we do not have to pay any of our profits to shareholders instead they are paid directly to our members.

We ensure that the money the Society holds is treated in a responsible and sensible manner and gives as good as possible a return on investment.

If you take out a Simple Income Protection plan with us, you will be at the forefront of everything we do. For more information, please call 0330 134 5898

*Male aged 30 with a waiting period of 52 weeks, £710 of cover, premium of £5.04

Please note: All information within Your Resource Centre is correct at the time of publication, and we make every effort to keep content accurate. However sometimes information may be out of date. You should not rely on this information when making financial decisions as no financial advice has been given. The information reflects the view of the author and not that of Shepherds Friendly Society.

If you’re not sure what to do when making financial decisions then you should consult a financial adviser, who will likely charge for any advice that is given.

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