Protecting the income your household relies on
Your income supports the commitments you make every month. If illness or injury stopped you working, income protection insurance could provide a regular benefit after an agreed waiting period, helping you manage essential household costs while a valid claim continues.
TLA Finance can help you assess the financial gap, understand how different policies define incapacity and arrange cover suited to your circumstances, occupation, priorities and budget.
From Amersham, TLA Finance supports clients in Buckinghamshire, London, the Home Counties and across the UK.
Cover is subject to eligibility, underwriting, policy definitions and exclusions. Claims must meet the policy terms. If premiums are not maintained, cover may end. Most protection policies have no cash-in value.
What is income protection insurance?
Income protection is designed to replace part of your earnings if illness or injury leaves you unable to work and your claim meets the policy definition. It normally pays a regular benefit after the selected deferred period. Depending on the policy, payments may continue for a fixed benefit period or while a valid claim continues, up to the policy end date. It does not usually cover redundancy or simply losing your job.
It is also different from a savings plan: if premiums stop, the cover may end and there is normally no cash-in value. Important limitation: Income protection pays only when the policy definition of incapacity and all relevant claim conditions are met. Exclusions, deferred periods, benefit limits and claim requirements apply. Cover does not guarantee that all lost earnings will be replaced.
What could the benefit help you manage?
The benefit is intended to support your finances when illness or injury causes a loss of earnings. Subject to the policy terms, it may help you continue meeting:
The appropriate level of cover is not necessarily your full salary. Insurers set maximum benefit limits and take account of earnings and, in some cases, other continuing income or benefits. We will explain the basis of any recommendation.
How does income protection work?
Four policy details to compare
Incapacity definition
This determines when the policy treats you as unable to work. Wording may refer to your own occupation, a suited occupation or another defined test.
Deferred period
This is the waiting period before an accepted claim starts paying. It should be coordinated with employer sick pay, savings and other support.
Benefit period
Some policies can pay while a valid claim continues up to the policy end date; others limit each claim to a fixed period.
Premium basis
Premiums may be guaranteed, reviewable, level or index-linked, depending on the product. The long-term affordability and potential changes should be understood.
Who might consider income protection?
Income protection may be relevant where losing earnings would create a meaningful shortfall. That can include:
Suitability depends on your earnings, employment status, health, occupation, existing benefits, savings, other cover and budget. Income protection is not automatically suitable for everyone.
Income protection for self-employed people and company directors
When you are self-employed, an extended absence can affect both household income and the business. Evidence of earnings, trading history and the way you take income can affect the benefit available. Company directors may also need to distinguish personal income protection from business-owned arrangements. We will identify the relevant need and explain when specialist tax or accounting advice is required.
What affects availability and cost?
Premiums and policy terms can be affected by age, health and medical history, smoking or nicotine use, occupation and duties, hazardous pursuits, earnings, the amount and duration of cover, deferred period and selected policy features. An insurer may offer standard terms, charge a higher premium, apply an exclusion, postpone a decision or decline cover. Any initial indication or quote remains subject to a completed application and underwriting.
A lower premium does not necessarily mean more suitable cover. The incapacity definition, exclusions, benefit limits, support services, premium basis and claim provisions all matter.
Income protection, critical illness cover and life insurance
These policies address different financial risks and may sometimes be used together. Advice should begin with the effect each event would have on your finances.
Income protection
Inability to work because of illness or injury, subject to the policy definition, may trigger a regular replacement income after the deferred period while a valid claim continues.
Critical illness cover
A diagnosis meeting a covered policy definition may trigger a lump sum to help manage the financial impact of a specified serious illness.
Life insurance
Death during the policy term, subject to the policy terms, may trigger a lump sum or regular benefit to support beneficiaries or help with liabilities.
Why advice and policy comparison matter
Income protection policies can differ significantly in when they pay, how long they pay for and how they treat changes in income or occupation. TLA Finance will discuss your needs and existing arrangements, explain the recommended policy and provide the information you need to make an informed decision.
The availability and terms of cover depend on your circumstances and the insurer’s underwriting decision. TLA Finance does not guarantee acceptance, a particular premium or payment of a claim.
Ready to review your income protection?
A short conversation can help establish what income you would still receive, how long your existing resources might last and whether income protection should form part of your wider protection plan.
Important information
Income protection insurance pays only when the policy definition of incapacity and all applicable claim conditions are met. Deferred periods, exclusions, benefit limits and evidence requirements apply. Cover does not usually include redundancy. You must answer application questions accurately and completely and tell the insurer about relevant changes when required. If premiums are not maintained, the policy may end. Most protection policies have no cash-in value.
Do not cancel existing protection until any replacement policy is fully in force and you have understood the differences in cover, exclusions, cost and terms.
Frequently Asked Questions
Does income protection cover redundancy?
No. Income protection is designed for loss of earnings caused by illness or injury when the policy definition is met. It does not usually cover redundancy or unemployment.
How much of my income can I insure?
Policies normally cover only part of eligible earnings and insurers apply maximum benefit limits. The amount available depends on your earnings, employment status, existing benefits and the insurer’s rules.
When would an income protection policy start paying?
Payment normally starts after the selected deferred period and only after the insurer accepts the claim. The appropriate deferred period should reflect sick pay, savings and other financial support.
How long can income protection pay for?
That depends on the policy. Some policies can pay while a valid claim continues up to the policy end date, while others limit each claim to a fixed period.
Can self-employed people get income protection?
Yes, subject to eligibility and underwriting. Insurers will assess earnings and may request financial evidence. The absence of employer sick pay can make the need particularly important to assess.
Can I get cover if I have an existing medical condition?
Possibly. The insurer may offer standard terms, charge a higher premium, apply an exclusion, postpone a decision or decline cover, depending on the condition and its underwriting rules.
Is income protection the same as critical illness cover?
No. Income protection is designed to pay a regular benefit when illness or injury prevents work under the policy definition. Critical illness cover generally pays a lump sum after a valid diagnosis of a specified condition.
Should I replace an existing income protection policy?
Only after comparing the existing and proposed policies carefully. Definitions, exclusions, benefit limits, deferred periods, premium terms and underwriting may differ. Do not cancel existing cover until replacement cover is fully in force.
Speak to TLA Finance
Review how you would meet essential costs if illness or injury stopped you working.
Request an income protection review
Provide your basic contact details and select your preferred time and method of contact. We will explain how any further information should be supplied securely.
Please do not include medical, health, genetic, bank-account or confidential business information in this general enquiry form.
