What’s the difference between critical illness and income protection?

What’s Income Protection?

Income protection insurance is a policy that will pay out if you are unable to work due to illness or injury. An income protection policy is not limited to self-employed people, but it is very popular with them because they do not have the same employee rights as PAYE workers, including statutory sick pay. If you are a self-employed worker, you may be able to claim Employment and Support Allowance to help with living expenses if you have health issues that prevent you from working. Adults over the age of 25 could receive up to £114.10 per week, depending on their circumstances. That £114.10 per week might not be enough to cover all of your household expenses.

 This is where Income Protection comes in; it can ensure that financial obligations are met. You can receive between 50% and 70% of your monthly income tax-free. 

What’s Critical Illness Cover?

Many people often take out critical illness cover when they take out life insurance. It provides additional cover in the event that you were to suffer from a critical illness.

The list of critical illness varies from provider to provider however the main ones are usually stroke, cancer and cardiac arrests but some may also cover blindness, deafness, third degree burns, loss of speech and much more.

What’s the difference between Income Protection & Critical Illness Cover?

These two insurance policies are vastly different. Income protection pays a percentage of your salary in regular installments until you return to work and can be used if you are unable to work due to illness or injury. For example, if you’re a tradesman who broke their hand or if you have been signed off with stress from the doctors.

If you were diagnosed with a critical illness that is covered by your policy, you will typically receive a lump sum payment, and it is unlikely that you will be covered if you were injured (e.g. a broken arm).

If you choose to have both Income Protection and Critical Illness insurance, you can make claims on both policies as long as both claims are valid and meet the criteria of your policies. 

If you would like to find out more about income protection and critical illness or would like to get a quote, get in touch with our team today!

 The information provided on these pages is generic.  None of the information given constitutes advice or a personal recommendation.

About Us
Personal Insurance
Business Insurance
News
Contact Us
Refer a Friend