Income Protection

Income protection insurance is a type of policy that replaces a portion of your lost income if you are unable to work due to an injury or illness. The amount of coverage and length of time it will pay benefits depends on the plan you choose.

At Echo Finance, we understand that everyone's financial situation is unique. As a whole of market provider, we can provide you with expert advice and find the policy that's right for you. Call us today to speak with one of our experienced advisors and get started on the path to financial security.

Echo Finance is here to help you secure the financial future you deserve. Contact us today to learn more about our income protection insurance policies.

What is income protection insurance?

Income protection insurance is a type of policy that can help you financially if you’re unable to work due to an injury or illness. Sick pay and other benefits from your employer will usually only cover a portion of your lost earnings, so income protection insurance can be used to top up your income.

Most people rely on their monthly income to cover their living expenses, so an injury or illness that prevents you from working can be devastating. Income protection insurance can help ease the financial burden by replacing a portion of your lost income.

How does income protection insurance work?

Income protection insurance policies typically pay out a monthly benefit for a specified period of time, usually until you return to work or reach retirement age. The amount of the benefit and the length of time it is paid will depend on the policy you choose.

Some policies will also cover additional expenses such as the cost of retraining if you’re unable to return to your previous occupation.

What are the benefits of income protection insurance?

If you're ill and unable to work, statutory sick pay and other state benefits may not be enough to cover your living expenses, so income protection can top up your income if you need it. Particularly if you're self-employed and sick pay is not covered, income protection can give you peace of mind that you have a safety net in place.

There are many benefits of income protection, including:

• It can help you cover your living expenses if you’re unable to work due to an injury or illness.
• It can give you peace of mind knowing you have a safety net in place if you’re unable to work.
• It can help you cover the cost of retraining if you’re unable to return to your previous occupation.

Income protection insurance can be an important part of your financial security plan.

Do you need an income protection plan?

If you’re like most people, you rely on your income to cover your living expenses. An injury or illness that prevents you from working can be devastating.

Whether or not you need income protection insurance will depend on your individual circumstances. Some factors to consider include:

• Your savings – do you have enough in savings to cover your living expenses if you’re unable to work?
• Your family’s financial situation – would your family be able to cover your living expenses if you could not work?
• Your employer’s sick pay policy – does your employer provide sick pay or other benefits that would cover your living expenses if you were unable to work?
• Your state benefits – would you be eligible for state benefits if you were unable to work?

Income protection insurance can help ease the financial burden by replacing a portion of your lost income. It’s important to choose an income protection plan that meets your specific needs and budget.

At Echo Finance, we offer a variety of income protection insurance policies to meet your unique needs. Call us today to speak with one of our experienced advisors and get started on the path to financial security.

Is income protection cover the same as Payment Protection Insurance (PPI)?

No, income protection and payment protection (PPI) are two different types of insurance. Payment protection is designed to cover your repayments on loans, credit cards, and other debts if you lose your job or become ill. It is not designed to replace your income.

Millions of PPI policies were sold in the UK between 1990-2010, although many were mis-sold. Sometimes known as short-term income protection, unemployment cover, or accident cover, PPI typically covers payments for a defined period of time, generally 12 months.

Income protection insurance, on the other hand, is designed to replace a portion of your lost income if you’re unable to work due to an injury or illness. It can be used to cover your living expenses and other financial commitments.

When do you need income protection cover?

There are a variety of life events that can occur that would make income protection insurance beneficial. You may want to consider this type of policy if:

• You are the primary breadwinner for your family
• You have a high-risk job
• You do not have insurance through your employer
• You're self-employed
• You have a pre-existing medical condition

Evaluating your need for income protection insurance is an important part of financial planning.

How much income protection do you need?

The amount of income protection you need will depend on your specific situation. Some factors to consider when determining how much coverage you need include:

• Your monthly living expenses
• Your family’s financial needs
• Your outstanding debts
• Your savings and investment accounts

Our team of experienced advisors can help you determine the amount of income protection insurance you need. Contact Echo Finance today to get started.

How much does income protection insurance cost?

The cost of your fixed monthly premiums for income protection insurance will vary depending on a number of factors, including:

• Your age
• Your occupation
• Your health history
• The amount and length of benefits you choose, for example, the waiting period (also known as the deferred period) between the date you become unable to work and when benefits begin to be paid, and the replacement income level.

What to consider when choosing an income protection policy

There are several things to consider when shopping for income protection insurance, including:

How much income do you need to replace?

This will depend on your particular circumstances. Consider your regular bills and expenses, as well as any debts you may have. You may choose to replace a percentage of your income, or you may opt for a fixed amount.

The length of time you need coverage

This will depend on how long you think you'll be out of work. If you're unsure, it's best to err on the side of caution and choose a policy with a longer benefit period.

Whether you want a policy that covers you until retirement

Some policies will only pay benefits for a certain number of years, while others will cover you until you reach retirement age.

The deferred period

This is the length of time between when you become unable to work and when the policy kicks in. The longer the deferred period, the lower your premium will be.

Your benefit amount

This is the monthly payment you'll receive from your policy if you're unable to work. Be sure to choose an amount that will cover your living expenses.

Echo Finance can help you find the right income protection insurance policy for your needs. We offer a variety of policies from different carriers, so you can find the one that's best for you. Contact us today to get started.

Speak to an expert

Echo Finance is here to help you every step of the way. We understand that choosing the right income protection insurance policy can be overwhelming. That’s why we offer a variety of policies from different carriers. And our team of experienced advisors is always here to answer your questions and help you find the best policy for your needs. Contact us today to get started and compare income protection insurance quotes.

When you contact Echo Finance, one of our expert advisors will help you compare income protection insurance quotes from a variety of carriers. We'll work with you to find the best policy for your needs and budget. Contact us today to get started.