Long-term income protection

Income protection policies typically cover between 50-70% of your gross monthly salary, but this can vary significantly based on several factors. The exact percentage depends on your occupation, age, medical history, and the policy you choose. For instance, a high-risk profession like construction might have different coverage terms than an office-based role. Some specialist policies for medical or legal roles might cover the majority of your income, because your earnings structure might be layered and complex.

Income protection can have widely varying durations, from short-term options of 1-2 years to full-term policies that last until retirement. Short-term income protection insurance works by covering just a portion of your income until you can return to work or until the policy ends.

Pre-existing conditions are a complex area of income protection. Insurers may completely exclude them or offer modified or limited coverage. Most insurers will typically carry out a detailed medical history review, considering factors such as the severity of the condition, your current treatment, how likely it is to recur, and the impact on your ability to work. For instance, well-managed diabetes might receive standard coverage, while a more severe ongoing health issue could be partly or fully excluded.

Income protection has transformed its approach to mental health coverage in recent years. Modern, comprehensive policies see workplace health as holistic and value the full spectrum of mental health as legitimate reasons for claims. To successfully claim for mental health conditions, you'll need robust medical documentation. This might include detailed reports from psychiatrists, psychologists, or other specialists. They must clearly show how the condition significantly impairs your ability to perform your job.

The standard processing window ranges from about a month to three months, with several factors impacting the speed and smoothness of your claim. One of the most important factors is that your documents are detailed and complete. If your claim comes with clear medical evidence, full employment records, and key supporting documentation, it'll likely be processed more quickly.

Insurers understand that job mobility is a feature of modern working life, and many offer flexible policies that adapt to your changing career. "Portable" policies remain valid across different roles, whether you're switching companies, becoming self-employed, or moving between full-time and contract work. Significant changes to your income, however, might mean you need to adjust your policy.

Critical illness cover is typically not something you can add to an income protection policy. These tend to be separate insurance products that are taken out independently. The reason comes down to how the products are structured and used. If you fall ill and can't work, income protection payments replace a portion of your monthly income for a specified period. Critical illness insurance offers a one-time lump sum payment if you're diagnosed with a specific, serious medical condition.