Family Protection – Income Protection. Why it is important and how do you choose the right provider?

How would you pay the bills if you were sick or accidentally injured and couldn’t work? This is very important question I ask all my clients as we do tend to think it will not happen to us. But each year close to a million people in the UK find themselves unable to work due to a serious illness or injury (ABI 2015).

If you were unable to work, for how long would you be able to survive on savings, or on sick pay from work? What if you were never able to work again? Not only would most people’s savings run out but their pension will similarly suffer due to lack of contributions.

When the unexpected happens, I know that what matters is peace of mind from a policy you can trust. Typically the policy offers the following:

  • Cover for ill health or accident
  • Payable until expected retirement date if you are unable to return to work
  • An initial deferred period to exclude more minor afflictions (deferred period)
  • Proportionate benefit if you return to work in a reduced capacity

All of the above can be included in a comprehensive policy. You do have choices within to adjust the premium accordingly. For example, most people expect 65 to be their normal retirement age, but limiting the term of cover to age 60 can disproportionately reduce premiums.

Also the longer the deferred period the lower the premiums. Check how long your employer will pay salary and earmark savings to cover an initial period of unpaid disability. Deferring for 3 or 6 months significantly impacts premiums.


With all life and protection insurance, getting the right policy for you is crucial and it is therefore important to seek out the right advice. We take time to tailor cover to your needs ensuring value for money is maximised.


John Merrifield Dip PFS, Cert (CII) MP.

This information is provided strictly for general consideration only. No action must be taken or refrained from based on its contents alone. Accordingly, no responsibility can be assumed for any loss occasioned in connection with the content hereof and any such action or inaction. Professional advice is necessary for every case.