Protect your income
when illness or injury stops you working.
Your income helps pay for your home, household bills and everyday life.
Income protection insurance is designed to pay a regular benefit if illness or injury leaves you unable to work and you meet the policy definition of incapacity. Swan Protect can help you consider the amount of cover, waiting period, benefit period and policy features that fit your circumstances and budget.
What could the benefit help you pay for?
The money is paid to you, so it can generally be used for the expenses that matter most to your household, subject to any policy terms:
- Mortgage or rent payments
- Household bills and utilities
- Food and everyday living costs
- Loan and credit commitments
- Childcare and family expenses
- Travel and treatment-related costs
- Maintaining savings rather than using them immediately
Who may wish to consider income protection?
Income protection may still be worth considering if you already receive employer benefits, but the policy should be coordinated with existing sick pay and other income so the proposed benefit remains appropriate.
Key policy choices
We can help navigate how income protection works so you choose the right structure for your needs.
Monthly benefit
Insurers normally limit cover to a proportion of your earnings. Choosing too little may leave a shortfall, while requesting more than the insurer can support from your earnings may not increase the amount ultimately payable.
Deferred period
The deferred period is the time between becoming unable to work and the start of eligible claim payments. A longer deferred period can reduce the premium, but you need enough employer sick pay, savings or other resources to manage until payments begin.
Benefit period
A short-term benefit period may pay each accepted claim for a fixed number of months or years. A long-term policy may be capable of paying until the policy end date, provided you continue to meet the claim requirements.
Definition of incapacity
Determines the test used when assessing whether you are unable to work. This could be based on your own occupation, a suited occupation, or any occupation/activities-based tests. The title alone is not enough; read how the insurer applies it.
What affects the cost?
The cheapest premium is not necessarily the most suitable option. The policy definition, exclusions, payment period and ability to change cover can materially affect its value. Your premium is influenced by:
Income protection for self-employed people
Self-employed people may have no employer sick pay and may experience an immediate reduction in earnings when they cannot work. Income protection can therefore form an important part of personal financial resilience.
The insurer may ask for accounts, tax calculations, payslips, dividend records or other evidence to confirm insurable earnings at claim stage. Company directors should obtain tax advice where necessary.
Important considerations
Understanding what is not covered and how the claims process works ensures you know exactly how your policy protects you.
What may not be covered?
Exclusions and limitations vary, but policies may restrict or exclude claims connected with:
- A medical condition specifically excluded following underwriting
- Inaccurate or incomplete information supplied during the application
- Redundancy, unemployment or dismissal
- Normal pregnancy or childbirth (complications may be assessed)
- Intentional self-inflicted injury, criminal acts or misuse of alcohol/drugs
- Not meeting the policy definition of incapacity
- Income that cannot be evidenced when a claim is made
*This list is not exhaustive. Read the insurer’s policy conditions before deciding.
How a claim may be assessed
The insurer is likely to ask for evidence showing your medical condition, its effect on your work and your earnings before and during the claim. This may include:
A claim can end if you recover, return to work, no longer satisfy the policy definition, or reach the maximum payment period or policy end date.
How income protection works
Setting up your policy and making a claim follows a straightforward process.
Choose your benefit
Choose the monthly benefit you want to protect, within the insurer’s permitted limits.
Select deferred period
Select a deferred period that reflects your employer sick pay, savings and other resources.
Choose the duration
Choose how long each eligible claim can be paid and when the policy should end.
Complete application
Complete the insurer’s application and answer health, occupation and lifestyle questions accurately.
Submit a claim
If you become unable to work, submit a claim with the medical and financial evidence requested by the insurer.
Payments begin
Payments begin after the deferred period if the claim is accepted and continue while the claim conditions remain satisfied.
How Swan Protect
can help
We aim to make arranging protection straightforward and easy to understand.
Review your income
Review your income, essential monthly commitments, savings and employer benefits.
Discuss benefits
Discuss how much monthly benefit may be appropriate and affordable.
Compare options
Compare relevant deferred periods, benefit periods and incapacity definitions.
Explain the details
Explain important exclusions, premium structures and underwriting requirements.
Support your application
Support you through the application process and help you understand the insurer’s decision.
Encourage reviews
Encourage regular reviews when your income, occupation or family circumstances change.
Frequently Asked
Questions
Find answers to common questions about securing income protection for you and your family.
Need personal advice?
Speak directly to a protection specialist.
Does income protection cover redundancy?
Standard income protection normally covers an inability to work caused by illness or injury, not redundancy. Separate short-term unemployment or accident, sickness and unemployment products may operate differently.
How much of my income can I protect?
The permitted amount varies by insurer and is usually limited to a proportion of earnings. Other continuing income or benefits may reduce the claim payment.
Can I get cover if I am self-employed?
Potentially, yes. The insurer will consider your occupation, health and ability to evidence earnings. The way you take income from a business can affect the amount available.
Can I obtain cover with a medical condition?
A medical condition does not automatically prevent cover. The insurer may offer standard terms, charge more, apply an exclusion, postpone a decision or decline the application.
Will the policy pay if I can do another job?
That depends on the incapacity definition. An own-occupation policy is assessed differently from suited-occupation, any-occupation or activities-based cover.
Are claim payments tax-free?
Tax treatment depends on how the policy is arranged, who pays the premiums and current tax rules. Personal and employer-funded arrangements can be treated differently. Obtain tax advice for your circumstances.
Can I claim more than once?
Many policies can support more than one eligible claim while the policy remains in force, although linked or recurring claims may be handled under specific terms.
Can I change my cover later?
Some policies permit increases or changes, but further underwriting may be required. Do not cancel existing cover until replacement cover has been accepted and started.
What happens if I return to work gradually?
Some policies may provide proportionate or rehabilitation benefits where you return on reduced hours or earnings. The rules vary and should be checked in the policy wording.
Important information
Income protection policies have eligibility requirements, medical underwriting, definitions of incapacity, exclusions and claim limits. Cover and premiums depend on individual circumstances and insurer underwriting.
A policy may end if premiums are not maintained. Claims are only paid where the policy terms are satisfied and the insurer accepts the claim. The amount payable may be limited by evidenced earnings and other income received during incapacity.
Do not cancel existing protection until any replacement policy has been accepted, has commenced and you are satisfied with its terms. Swan Protect does not provide legal, accounting or tax advice.
Start protecting your
income today.
A long period away from work can place pressure on savings and household finances. Suitable income protection can provide a regular financial benefit while you focus on recovery, subject to the policy terms and a successful claim. Speak to Swan Protect to explore your options.