Personal protection insurance
Income Protection Cover
Bright Life Protection: Income Protection Cover
Life can be unpredictable, and unexpected illness or injury can leave you unable to work for an extended period.
With Bright Life Protection, Income Protection Cover ensures that if this happens, you’ll continue to receive a portion of your salary, allowing you to focus on recovery without the added stress of lost income.
about income protection
Income Protection: the What and Why
What is Income Protection
Income protection is an insurance policy that replaces a percentage of your income (typically 50-70%) if you’re unable to work due to illness or injury. Unlike critical illness cover, which provides a one-time lump sum, income protection pays out regularly—similar to a salary—until you’re fit to return to work or the policy ends.
Why Do I Need Income Protection?
If you rely on your salary to cover essential expenses like mortgage payments, rent, bills, and living costs, income protection can provide peace of mind. Whether you’re self-employed or employed, it offers long-term financial security, ensuring you can continue to meet your financial obligations even when you’re unable to work. Income protection is especially important for those who don’t have adequate sick pay benefits from their employer, or for anyone with a family dependent on their income. Without income protection, you may have to dip into savings, or worse, risk financial instability.
How Does Income Protection Work?
If you fall ill or get injured and can’t work, you’ll need to make a claim with your insurer. After a deferred period (which can range from a few weeks to several months depending on your policy), you’ll start receiving regular payments that replace a portion of your lost income. These payments continue until:
You are well enough to return to work, or…
The policy’s maximum payment period is reached (often until retirement), or…
The policy term ends
Key Features of
Bright Life Protection's
Income Protection
Cover
Consider these four important facets of Income Protection provided by Bright Life…
Flexible Payout
Choose how long you want your policy to pay out—from short-term options to longer-term coverage that continues until retirement.
Customisable Deferred Periods
Tailor the waiting period to suit your needs and budget. The longer the deferred period, the lower your premiums.
Coverage for a Wide Range of Illnesses and Injuries
We cover a broad spectrum of conditions, ensuring you’re protected against many eventualities that could prevent you from working.
Tax Free Payments
The monthly benefit you receive from your income protection policy is typically tax-free, helping you maximize your coverage.
For whom?
Who Should Consider
Income Protection?
Income protection is an excellent choice for these groups
Self-Employed Professionals
without access to sick pay or employer benefits.
Young Professionals
looking for long-term financial security as they build their careers and financial commitments.
Primary Earners
in a household whose income is critical to maintaining financial stability.
Homeowners
with a mortgage or renters with ongoing living expenses.
For whom?
Who Should Consider
Income Protection?
Income protection is an excellent choice for these groups
How Much Does Income Protection Cost?
The cost of income protection depends on several factors:
Age
Younger policyholders tend to pay lower premiums.
Health
Pre-existing conditions may affect your premium.
Job
Some occupations carry higher risk levels and may result in higher premiums.
Deferred Period
The longer the period before payments begin, the lower your premium.
Level of Coverage
Policies that pay for a longer period will generally cost more.
Bright Life Protection check providers for competitive premiums tailored to your needs, ensuring that you get the best value for comprehensive protection.
Income Protection vs. Critical Illness Cover
While both policies offer financial protection during illness or injury, income protection provides regular payments over time, while critical illness cover gives a one-time lump sum. For maximum protection, many people choose to combine both, ensuring they’re covered for different scenarios.
Why Choose Bright Life Protection to help with Income Protection?
At Bright Life Protection, we understand that maintaining financial security during difficult times is critical. Our income protection plans are tailored to you with flexibility and affordability in mind, allowing you to protect your income and your future, no matter what life throws your way.
Frequently Asked Questions.
Income protection insurance provides you with a regular income if you’re unable to work due to illness or injury. It typically pays out a percentage of your salary (usually between 50-70%) until you can return to work or until the policy ends.
If you become ill or injured and can’t work, you can make a claim on your income protection policy. After a set deferred period, which you can choose, your insurer will start paying you a regular benefit until you return to work or the policy term ends.
The deferred period is the time you choose to wait before your income protection benefits begin. This can range from a few weeks to several months, depending on your policy. A longer deferred period generally means lower premiums.
Income protection is particularly valuable for self-employed individuals, primary earners in households, and anyone who relies on their income to cover essential expenses. It’s also beneficial for those with limited sick pay benefits from their employer.
The cost varies based on factors such as age, health, occupation, and the level of coverage you choose. Generally, younger, healthier individuals pay lower premiums, while higher-risk jobs may lead to higher costs
Yes, many income protection policies cover mental health conditions, but the specifics can vary between providers. It’s essential to review the policy terms to understand any exclusions or limitations related to mental health claims
In the UK, the regular payments you receive from an income protection policy are typically tax-free, allowing you to maintain more of your financial stability during difficult times
Income protection can last until you return to work, until a specified age (like retirement), or for a set term (like 2 or 5 years), depending on the policy you choose
It may be possible, but it depends on the insurer and the condition. Some insurers might offer cover but with exclusions for your pre-existing conditions, while others may decline coverage altogether
To find the best policy, consider factors like the amount of coverage you need, the length of the deferred period, and any additional features you may want, such as flexibility in changing your cover as your needs evolve. Consulting with a financial adviser can also help you make an informed decision