Types of Salary Insurance

Your Salary Insurance UK Options

You have a few different options when it comes to Salary Insurance Cover, each with their own unique features.

Income Protection Insurance 🔒

Income Protection Insurance is a policy designed to provide financial stability if you’re unable to work due to illness or injury. By covering a portion of your salary, Income Protection ensures you have a steady income while recovering, helping to manage daily expenses without draining savings.

How It Works

Income Protection can cover up to 70% of your pre-tax income. After a set deferred period (which can range from weeks to months), the policy pays out until you’re able to return to work, retire, or reach the policy’s end date.

What’s Covered?

Income Protection offers short-term and long-term cover options. Short-term cover provides benefits for a fixed period, often one to five years, while long-term cover supports you until retirement age if needed. Long term policies are more comprehensive, but they’re also more expensive to take out. Choosing the right type depends on your financial situation, job security, and personal preferences.

Flexible Premiums And Waiting Periods

Policies allow you to select a waiting period that suits your financial situation. Shorter waiting periods mean quicker payouts but come with higher premiums. Longer waiting periods reduce premiums but delay financial support. However, if you get sick pay from work, you can align your insurance to kick in after your sick pay ceases, so you get continuous coverage with a lower premium.

Is It Right For You?

The risk of being unable to work due to unexpected health issues is real. For those without adequate sick pay or savings, Income Protection can be a lifeline. It’s ideal if you’re self-employed or only get minimal sick pay from your employer.

It’s crucial to compare quotes from different Income Protection providers, as policies vary by insurer in terms of coverage, exclusions, and costs. Our experts know the market inside out, and can find the most competitive policies that align with your needs.

Accident, Sickness And Unemployment Cover 🤕

Accident And Sickness Insurance is very similar to Income Protection, providing short-term financial support if you’re unable to work due to injury or illness. It’s particularly useful for those needing immediate coverage, but without a need for long-term Income Protection.

How It Works

This insurance typically pays out monthly benefits for up to two years per claim, helping cover essential expenses during recovery. Payments begin after a set waiting period (anywhere from one week to 12 months, depending on the policy), with faster payout options available for higher premiums.

Most long term policies will cover you under the “Own Occupation” definition. This means they’ll pay out if you can’t do your specific job role. However, many Accident, Sickness and Unemployment policies will only cover you under the “Suited Occupation” definition, which means they’ll only pay a claim if you are unable to do your own or similar job role.

What’s Covered?

While covering a wide range of illnesses and injuries, these policies often exclude pre-existing conditions, certain high-risk activities, and long-term disabilities. Therefore, it’s essential to review policy specifics, exclusions, and limitations carefully.

Is It Right For You?

This type of insurance is ideal for short-term support rather than lifelong coverage. It’s a good choice if you receive minimal sick pay from work, or if you want fast, temporary financial assistance in case of short-term illness or injury.

The most important consideration when choosing your salary protection is the occupation definition the insurer uses to assess a claim.

It’s vital to speak with an expert who’ll read all the fine print. Giving you peace of mind knowing that if you’re unable to work, your income is protected.

Alex Weir
Independent Protection Expert

Critical Illness Cover Vs Salary Protection

While Income Protection & Accident, Sickness and Unemployment provide regular payments to keep your finances steady, Critical Illness Cover delivers a one-time lump sum if you’re diagnosed with a serious condition like cancer, a heart attack, or a stroke.

This payout gives you the freedom to cover medical expenses, replace lost income, or simply focus on what matters most—your recovery.

How It Works

If you’re diagnosed with a covered condition and meet the policy’s short “survival period,” Critical Illness Cover works differently from the ongoing payouts of Salary Insurance. Instead, you’ll receive a single lump-sum payment, designed to help you tackle major expenses like medical bills or adapt to life’s changes while easing financial pressure.

What’s Covered?

Coverage specifics vary between Critical Illness Cover and Salary Insurance, so it’s essential to understand the details of each policy. Critical Illness providers may have more stringent criteria for claim eligibility, often requiring specific evidence from medical specialists, whereas Salary Insurance focuses on your ability to work due to illness or injury.

Critical Illness policies can also include optional extras, such as children’s coverage or access to global treatments, offering tailored protection for unique needs. In contrast, Salary Insurance provides ongoing financial support tied to your income, ensuring day-to-day expenses are consistently covered while you recover. Both serve different purposes but can work together to provide comprehensive peace of mind.

Is It Right For You?

If you want peace of mind against specific health risks, Critical Illness Insurance offers financial security. It’s an option that’s focused on recovery support and financial stability.
Critical Illness policies differ wildly, so it’s essential to get expert advice before buying. Our experts can simplify each provider’s specific conditions, payouts, and exclusions, allowing you to make an informed choice without delving into the jargon.

When deciding between Salary Protection Cover and Critical Illness Cover—or even combining the two—it’s important to understand their unique benefits.

The right choice depends on your personal circumstances, but many people find they complement each other well for comprehensive protection.

Samantha Haffenden-Angear
Independent Protection Expert

How To Choose The Right Salary Protection Policy

There are a number of factors to consider when choosing the best Salary Protection policy for your needs.

1. Work Out Your Financial Obligations

Start by identifying your monthly expenses, savings, and any sick pay you’re entitled to from work. If your income is vital to supporting dependents or covering specific bills, this will give you a better idea of the amount you should be insured for.

2. Research The Types Of Policies

Do you need short or long term cover? Would a lump sum be better for making adjustments to your home in the case of disability? Is the stability of a monthly payment more appealing? By evaluating the nature of your work, health history, and potential medical risks, you can decide which type best aligns with your priorities.

3. Understand Waiting Periods And Payout Durations

Decide whether you need short-term support or long-term security. Each Income Protection policy comes with a deferred period (the time before your money is paid) and a payout duration (how long the money is paid for). If you have limited savings, a shorter waiting period may be more suitable, even if premiums are slightly higher.

4. Check For Optional Add-ons

Optional features like child cover, global treatment access, or extended benefits can add value. Choose only the ones that enhance your policy without over-inflating your premium.

5. Read The Small Print

Carefully review policy terms, especially regarding exclusions, claims process, and payout conditions. This step ensures you know exactly when and how your policy will pay out, reducing surprises during critical times.

Compare UK Salary Insurance Quotes And Get Expert Advice

There’s a lot to think about when it comes to Salary Cover Insurance. Luckily, we live and breathe personal protection at Drewberry, helping people like you find their ideal cover.

We’ll break down any complex terminology to ensure you’re buying the right policy at the right price. For fee-free advice and access to the most competitive rates, give us a call on 02084327333 or email help@drewberry.co.uk.

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