Cheap Income Protection Insurance Options for Every Budget

Looking for affordable income protection insurance? You're not alone. Many people struggle to find a plan that fits their budget.

Income protection insurance can cost as little as $10 per month, depending on your age and health. For example, a 30-year-old non-smoker might pay around $10 per month for a basic policy.

The key is to shop around and compare quotes from different providers. By doing so, you can save up to 50% on your premiums compared to buying from a single insurer.

Remember, income protection insurance can provide a financial safety net in case you're unable to work due to illness or injury.

Income protection insurance is sometimes called accident insurance, redundancy insurance, or sickness insurance. It can help you or your family if you're unable to work because of illness or redundancy.

This type of insurance provides some much-needed cash at a difficult time, so you're able to pay your household bills and meet other costs.

The amount of cover you need depends on several factors, including whether you have dependents and what your regular outgoings are.

Income protection insurance is sometimes called accident insurance, redundancy insurance, or sickness insurance. It can help you or your family if you're unable to work because of illness or redundancy.

You may already have some form of income protection through your workplace benefits or pension scheme, which could include sick pay.

Not everyone needs income protection, but it can be beneficial for those who don't have these benefits or are self-employed.

If you're self-employed or freelance, you might benefit from having income protection cover.

Income protection insurance provides regular payments to you and your family or dependants while you're unable to work.

You can use this coverage to pay essential expenses like your mortgage, loans, living expenses, and bills.

It helps you maintain your standard of living, even if you're not earning a income.

Regular payments can be made for a specific period of time, usually until you're able to return to work or retire.

There are several types of income protection insurance to consider, each with its own benefits. You can choose between accident and sickness cover, which covers you if you're unable to work due to injury or illness.

Accident and sickness cover can be a long or short-term policy, lasting for an extended period or just a few months. ASU cover, on the other hand, also covers redundancy or involuntary unemployment, and is usually short-term, lasting around 12 months.

Payment protection insurance (PPI) is designed to cover a single debt, such as a mortgage, loan, or credit card, and continues to make payments if you're unable to work. PPI typically covers for 12-18 months.

Mortgage payment protection insurance (MPPI) is specifically designed to continue paying off your mortgage if you can't work. These policies can cover your mortgage payments for 6 months to 2 years, depending on the policy.

You can also choose between permanent health insurance (PHI) and other types of policies. PHI allows you to receive a set portion of your normal income if you're involved in an accident or become ill and are unable to work.

The portion of your regular income covered by PHI can vary, but can often be up to 50% of your gross salary. This type of policy should not be confused with private health cover, which covers medical expenses but not usually any loss of income arising from them.

You can buy cover for the short term – for up to five years, or you can set up a long-term income protection policy which might cover the whole of your working life.

Here are the main types of income protection insurance:

When deciding how much income protection insurance cover you need, consider your current household costs and other expenses.

You may not need or be able to afford insurance to cover your total salary in your income protection plan.

Your monthly payout should be enough to cover your current household costs and other expenses.

Short-term income protection insurance can be a welcome help for a time while you recover, find a new job, or adjust to a new way of working.

This type of cover pays out a monthly sum from the insurer if you need to make a claim and the claim is successful.

You'll receive the monthly payment for a set time, but not for the rest of your working life, so you'll eventually have to find other ways to pay for your outgoings.

Short-term income protection insurance is cheaper than long-term cover, but it likely has more exclusions and may cover fewer illnesses or issues.

The monthly payment will help you pay bills and meet expenses in the short term, which can be a huge relief.

The cost of income protection insurance can be affected by many factors, including your age, with older applicants paying higher premiums.

Smoking status also plays a role, with smokers facing higher premiums than non-smokers. Your medical history can also impact the cost, with any pre-existing conditions increasing your premiums.

The amount of cover you choose will also impact the cost, with higher cover amounts resulting in higher premiums. Your job type can also affect the cost, with lower-risk jobs like class 1 jobs having lower premiums.

A shorter deferred period will also increase the cost, as the cover starts sooner and runs for longer during each claim.

The cost of income protection cover can vary significantly, with premiums ranging from £6 to £50 a month. This is because several factors can impact the price of your policy.

Your age is one of the main factors that affect the cost of income protection. The older you are, the higher your premiums will be, and they will increase as you get older if you choose a reviewable plan.

Smoking status also plays a role in determining your premium. If you're a smoker or have smoked in the last 12 months, your premiums will be higher than if you were a non-smoker. I've seen friends who smoke pay significantly more for their income protection cover.

The amount of cover you choose also impacts the cost. The higher the cover, the more you'll pay. This is because you'll be insuring a larger portion of your income.

The job you do can also affect the cost of your income protection cover. A class 1 job that's low risk comes with lower premiums than a class 4 or 5 job that's considered very risky. If you have a high-risk job, you may need to pay more for your income protection cover.

The deferred period, which is the time you have to wait before your cover kicks in, can also impact the cost. The shorter the period, the more you'll pay because the cover starts sooner and will run for longer during each claim made.

Some policies may include additional benefits that you can pay extra for, which can increase the cost. However, a standard policy will be cheaper than one that includes these add-ons.

Here's a rough breakdown of the factors that can impact the cost of your income protection cover:

It's also worth noting that premiums may increase over time due to indexation, which is usually around 3.5% each year to keep up with inflation.

Income protection can provide financial support in the event of illness or injury, and it's not limited to specific illnesses like serious illness cover. This means you can make multiple claims on the same policy.

One of the benefits of income protection is that it offers financial support for a wide range of illnesses, not just specific ones. This can be a big relief for people who are struggling to make ends meet due to illness or injury.

Income protection can provide financial support for a long period of time, often until you can return to work or reach a certain age. This can be a huge weight off your shoulders, allowing you to focus on recovering without worrying about the financial implications.

You can make multiple claims on the same policy, which is a big advantage over other types of insurance that may only allow one claim. This means you can get the support you need if you're unfortunate enough to become ill or injured multiple times.

Accidents can happen to anyone, and if you're unable to work due to an illness or injury, it's essential to have a financial safety net. Accident and sickness cover pays out until you can return to work, usually for one or two years.

This type of cover can provide peace of mind, knowing that you'll have a steady income while you recover. Some policies may have a longer or shorter payout period, but one or two years is a common timeframe.

Accidents and illnesses can be unpredictable, and job loss can be a significant blow to your finances. Accident, sickness and unemployment cover pays out if you suffer illness, an accident or job loss, offering comprehensive protection for your income.

Our insurance expert advises considering statutory sick pay and additional sick pay benefits offered by your employer. This will help you determine if you need income protection insurance to maintain your family's lifestyle.

It's crucial to think about whether statutory sick pay would be enough to cover your family's expenses. If not, income protection insurance can provide a safety net.

According to our expert, it's essential to factor in additional sick pay benefits, if your employer offers them. This will give you a clearer picture of your financial situation while you're out of work.

Our insurance expert advises considering statutory sick pay and any additional benefits your employer may offer. This will help you determine if it's enough to maintain your family's lifestyle while you're out of work.

Statutory sick pay can vary depending on the payment type you choose. There are three options, and each has its own implications for your financial situation.

It's essential to think about how you and your family will manage financially while you're on sick leave. If you're unsure, you may want to consider income protection insurance to ensure a steady income.

If you're concerned about your family's well-being, it's worth exploring income protection insurance as an option. This can provide a safety net and peace of mind during a difficult time.

Reviewable policies let you change your level of income protection insurance after a set term.

This means you can adjust your coverage as your needs change, whether that's due to a change in income, expenses, or other circumstances. Reviewable policies offer flexibility and adaptability that can be a big advantage.

For example, if you're starting a family, you may need to increase your coverage to account for the added expenses. Reviewable policies allow you to do just that, giving you peace of mind and financial security.

Choosing the right income protection policy can be a daunting task, but it's essential to get it right. The deferred period is a crucial factor to consider, as it impacts the cost of the policy, so choose an insurer that offers cover from when you need it.

You should also think about the amount of cover you need and can afford, and make sure your policy allows you to top up your cover if your needs change.

To save time, you could let a broker gather quotes for you from all the insurers, but be sure to check for any fees they may charge first.

Choosing the right product is a crucial step in selecting an income protection policy. You should consider the deferred period, which directly impacts the cost of the policy, so choose an insurer that offers cover from when you need it.

The amount of cover is also vital, and you should get as much cover as you need and can afford. If your needs change, make sure your policy allows you to top up your cover.

Cover benefits vary between insurers, so work out what benefits you need and see what each insurer includes as standard.

Using a broker can save you time by gathering quotes from all the insurers, but be aware that they may charge fees.

If you're looking for income protection insurance in Ireland, there are a few options to consider.

Aviva, Irish Life, New Ireland, Royal London, and Zurich are all main insurers that offer income protection policies.

These insurers can provide a safety net in case you're unable to work due to illness or injury.

Aviva, Irish Life, New Ireland, Royal London, and Zurich are the four main insurers who offer income protection insurance in Ireland.

You can also consider working with insurance brokers who can help you find a suitable policy.

Here are the main insurers that offer income protection insurance in Ireland:

If you're relatively young when you take out income protection, it can offer peace of mind at a reasonable monthly cost.

However, if your job is in a high-risk class, your premiums are likely to be steep so you'll need to weigh up your need vs affordability. This is especially true if you're a smoker or have a poor medical history.