How much should you insure for?

Most people get enough income protection insurance to cover their fixed monthly bills plus sufficient for day to day living expenses.

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Will Short Term Income Protection Insurance pay out immediately you make a claim?
You have to be off work for 30 days before you can make a claim but the income is then backdated to the very first day you were off work.
You want to ensure that you receive a monthly income if you became sick, unemployed or had an accident for as long as you were off work (i.e. no limit of 12 months) or until the insurance policy finished whichever came sooner.
You need Permanent Health Insurance.
How long should you insure for?
Short Term Income Protection Policies are renewed annually. So you really only need to plan one year ahead.
Should you insure for accident and sickness or accident, sickness and unemployment?
The Short Term Income Protection Insurance Burgesses offer gives you the option of insuring yourself for:
Will a claim under a Short Term Income Protection policy affect any State benefits to which you may be entitled?
No. Whilst your Short Term Income Protection policy replaces part of your income, the insurance payouts you receive do not qualify as income in the eyes of the Benefits Agency or the Inland Revenue.
We suggest you add up your known monthly expenses and then add some for day to day living. Remember to exclude any payments that you already have specifically insured such as loan repayments, or your mortgage.

Income received from insurance policies is not taxable, so you can ignore that issue!

Frequently Asked Questions related to the above topic.
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