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Adviser Centre

Income Protection.

Defaqto 2016 5 star income protection award logo  

  • Our plan is designed to pay a monthly benefit to the client if they are unable to work due to incapacity caused by illness or injury, resulting in a loss of earnings. 
  • 2 year Low Cost Option – multiple claims permitted, with each individual claim allowable for a maximum duration of two years.
  • Improved replacement ratio used to calculate the maximum benefit based on amount of annual income. Can now cover 60% of the first £60,000 of annual income and 50% of any annual income exceeding £60,000.
  • Income Guarantee - If the client needs to make a claim, and their salary is lower than it was when they bought the product, the monthly benefit we pay will be based on the lower of £1,500 per month or the monthly benefit on their plan. This could be made up of a combination of continuing income alongside the monthly benefit.
  • Own occupation is available for all clients, except for housepersons, meaning fewer people will be assessed under the Activities of Daily Living.
  • Employment related non-means tested State Benefits are not deducted from the monthly benefit paid at claim.
  • Full and partial premium discounts are included for some 'Mental Health' and 'Spine' exclusions.
  • Other options available at outset include Stepped Benefit.
  • Increasing plans will increase in line with the changes in the Retail Prices Index (RPI) and multiplied by 1.5 subject to a maximum increase of 15% per annum. The RPI provides an indication of inflation on a monthly basis. The RPI measures and tracks the average change in the purchase price of goods and services such as housing expenses and mortgage interest payments. If changes to the RPI are 1% or less then the premium and amount of cover will stay the same until the next review.
  • Benefits automatically included from outset are Waiver of PremiumHospitalisation benefit, Continuous cover, Proportionate benefit, Linked claims and Life cover.
  • Cover can be increased using the Changing your policy (Previously known as Guaranteed Insurability Option (GIO)) during the term of the plan without further underwriting. Other changes can be made to the plan and will be assessed at the time. 
  • Available for housepersons, those that work less than 16 hours per week, are not in paid employment, or are not working at the point of claim.
  • Only available as a single life plan.
  • Income Protection Benefit Plan should be reviewed regularly with your client.
  • This is not a savings or investment product and has no cash value, unless a valid claim is made.

Limitations and exclusions apply.

Products within range

Income Protection Benefit Plan - Overview 

Increasing Income Protection Benefit Plan - Overview