Income Protection Insurance for Mums in the UK & Northern Ireland
Mums in Northern Ireland & the UK can use Mummy Insurance to compare income protection insurance for mums for a variety of professions and vocations with varying levels of risk. Income protection insurance for mums should be considered if they work a job where they run the danger of losing a portion of their income for reasons beyond their control. This will provide you peace of mind about your income.
Loss of income might be concerning, particularly if you have several ongoing expenses. Income protection insurance for mums is available to support you financially until your problem is rectified if you experience a loss of income because of a work-related difficulty. It can help you with bills, rent or mortgage payments, and other expenses.
It can be challenging to locate insurance brokers or organisations that can offer coverage in Northern Ireland & the UK for mums when looking for a specialised policy like income protection. Mummy Insurance is here to support you!
Mummy Insurance makes it simple for you to get income protection insurance as a mum, which could help you save time and money. Simply provide your information, and we’ll match your requirements with our panel of insurance providers. Then, you can evaluate the available costs and coverage options and choose the one that best meets your requirements as a mum.
What is Income Protection Insurance for Mums in Northern Ireland & the UK?
Because it essentially pays the insured individual an income if they become unable to work due to an illness or injury, income protection insurance for mums is a type of personal insurance policy that is also known as sick pay insurance or salary protection. Since mental health issues rank highly among the causes of claims on income protection insurance, the illness doesn’t need to be physical.
One of the most underutilised forms of personal insurance for mums is income protection coverage. These days, most of us insure our homes, cars, and even our cell phones, yet frequently forget to cover our income.
What financial plans would you have in place if you had to stop working for a few months, a few years, or even longer due to illness or accident to cover all your monthly expenses? Most people would exhaust their savings within the first year and would then be forced to rely only on state assistance.
In most cases, taking out income protection insurance for mums is the only practical strategy to safeguard wages with adequate financial assistance over the long term (other than saving).
Won’t the State Pay Me If I Am Unable to Work?
The Employment and Support Allowance (ESA), which pays only £77.00 per week (if you are over 25), and statutory sick pay, which pays £99.35 per week for up to 28 weeks, respectively, suggest that long-term incapacity would significantly lower living standards for most households. It is also worth noting that to get some state benefits, you must go through a strict capability assessment – so it is not guaranteed.
What Does Income Protection Insurance for Mums in the UK & Northern Ireland Cover?
As a mum, if you get sick or hurt and can’t work because of it, losing income is covered by income protection insurance for mums. It functions as salary protection so you can receive up to 70% of your pay to support living expenses while you’re recovering. Income protection insurance for mums can be customised to consider your employer’s sick pay as well as any savings or other sources of income you might be able to utilise if you are unable to work.
How Long Will Income Protection Insurance Cover My Wages for Mums in Northern Ireland & the UK?
The kind of income protection policy you select as a mum will determine how long the monthly benefit to replace your wages will continue to be paid to you. Your wages will be covered for a specified period under one of two categories of income protection policies, which we describe below.
Long-term Income Protection Policies for Mums in the UK & Northern Ireland
Long-term income protection insurance for mums pays you a regular income until you either:
- Recover and return to work
- Reach the end of your plan (usually your retirement age)
- Die
Since long-term income protection insurance for mums protects your income for the remainder of your working life and allows you to file many claims during the policy period, it is the most comprehensive kind of wage protection you can purchase as a mum. Until you are healthy enough to return to work or you reach the policy end date, which is often set at the age you anticipate retiring, your plan would continue paying out each month (tax-free if it is a personal policy, or under PAYE if taken out via your employer). As a result, if you missed five years of work to recuperate from cancer, the plan might pay your wages for those five years.
As a mum, you could also want to investigate the advantages of critical illness cover, which would provide a lump sum payment if you were found to have one of the critical illnesses covered by the policy conditions.
Short-term Income Protection Policies for Mums in the UK & Northern Ireland
Because the claim period is capped and you can only get an income benefit for a certain amount of time, short-term income protection insurance for mums is more affordable than other types of income protection insurance for mums. There are several payment periods available for short-term income protection insurance, including 1, 2, 3, and 5 years.
Therefore, as a mum, if you choose a 2-year short-term income protection policy and needed to make a claim, the pay-out will last up to 2 years; however, if you started working again before that time, you would no longer be eligible for the benefit.
But keep in mind that you only have two years to file one claim; this does not stop you from filing several claims. You can reapply for benefits if you become unable to work for at least 6 months after your last claim and get up to an additional 2 years of benefits (this time frame can vary).
As a cost-effective alternative, short-term income protection insurance for mums can be quite valuable because it covers you throughout the early stages of even a long-term illness, allowing you to try to make plans while relying on the income you are already receiving.
When Does an Income Protection Policy for Mums Pay Out?
When you are considered medically unable to work due to illness or accident as a mum and have missed work for the duration of the waiting period, also known as the deferred period, selected on your policy, income protection insurance pays out. If you continue to receive money from your job, whether it be on a required or optional basis, your income protection insurance will not pay your benefit.
What is the Deferred Period?
The deferred period on an income protection insurance policy is the waiting time between your first day off work and the day your income protection insurance policy will start paying you an income. As you would expect, a short deferred period will make your income protection insurance policy more expensive than a long one. You can choose between waiting:
- A week
- 4 weeks
- 13 weeks
- 26 weeks
- 52 weeks
How To Choose the Best Deferred Period
You can determine the optimal deferred period for your income protection insurance by using the following information:
- How much of your savings you are willing to use and how long these will last.
- The amount and duration of sick pay your employer will pay.
- Any other sources of income you can rely on, such as a partner’s income or unearned income.
- State benefits that you can apply for or continue to get.
Knowing the above details will enable you to determine how long you can take off from work without getting behind on your bills. Ideally, you would select this duration for your deferment period.
Longer deferment periods will be less expensive than shorter ones, but it’s important to strike a balance between the cost of your income protection insurance and the likelihood that it will pay out when you need it.
Income Protection Claims for Mums in the UK & Northern Ireland
Income protection for mums is the form of personal insurance you are most likely to use out of all the options available. This is because it is much more likely that you will get sick or wounded throughout your working life and become unable to work than it is that you will pass away or get a serious illness.
Most of us consider life insurance for mums because we understand how terrible and tragic it would be for those we leave behind, but not nearly enough of us consider how an extended illness or unlucky accident could prevent us from working.
Some of the leading causes of claims on income protection insurance are:
- Back pain
- Mental health conditions
- Cancer
- Heart disease
A report from www.gov.uk confirms that only half of employers paid SSP only (54%), 28% paid above SSP, 13% did not provide any form of sick pay and 5% did not know.
