Income Replacement Overview
Income replacement insurance is intended to replace some of your regular working income if you are forced to stop work:
- after disablement
- an accident
- due to an illness
Pulse specialises in finding cover when many insurers decline. There are however circumstances such as serious ill-health and deteriorating or unstable health which mean that while Life Insurance may sometimes be available from our Underwriters, Income Protection may not be.
Income protection does not cover you should you be unable to work due to:
- redundancy
- unemployment
- dismissal
There are many factors which affect the availability and cost of cover and sometimes the period of cover and deferment period including:
- your age
- your health and medical history
- your lifestyle (including, for example, if you use nicotine products)
- your job
- if you are self-employed or you are a casual worker
There are some reasons you may need to consider or amend your income replacement cover:
- if you have taken on any new financial commitment such as a loan or mortgage
- to ensure you and your dependents (especially any new arrivals) are protected
- if your work or other life circumstances change so perhaps decide to work for yourself or start a new role, get a salary boost or change career or go to work abroad or in a more hazardous environment.
Income Replacement protects your income in the event of you being unable to work for a prolonged period of time, often due to accidental injury or sickness.
It is a specialised product which can be purchased to insure yourself, a key person or group of company employees, for example.
It has two key benefits;
- Should a claim be made within the policy period, a monthly benefit can provide regular alternative income if your salary stops. This is known as a Temporary Total Disablement (TTD) benefit.
- And in the worst cases where an injury does not heal enough or your illness really prevents your return to work, a lump sum may be payable. This is known as a Permanent Total Disablement (PTD) benefit. The cover is usually purchased on an “own occupation” basis, which covers the insured person for their occupation only (which means that the policy will pay out if the client can no longer perform that occupation and the fact that the person could do an alternative job is not taken into account). “Own occupation” will pay out sometimes for quite minor injuries, as long as these prevent the person from doing their usual work.
The cover is offered either on an annual basis or a long-term basis, it depends on the medical conditions and the underwriter we approach.
The process for renewal for annual policies is usually simple, with a Declaration of Health and/or a Proposal Form. However, updated medical evidence may be required if your health has changed in the prior year.
How does the product work in more detail?
The Lump Sum that is paid out if you are Permanently Totally Disabled is based on actuarial tables that are in standard use in the Lloyd’s market. However, if this Lump Sum is considered inadequate, we can obtain an indication on an alternative cover basis if you request this.
If you require a specific PTD Lump Sum, we will endeavour to accommodate this, but it will affect the premium charged.
The benefit will be paid if the insured person is unable to work due to accident or sickness beyond the selected deferred period. The benefit will cease if the insured person returns to work or reaches their normal retirement age.
At the end of the payment period for a TTD claim, if the applicant is proven to be Permanently and Totally Disabled (PTD), then the lump sum will become payable.
The PTD benefit is used for a variety of purposes. It is entirely up to you to determine how the funds are used. For example, it is often used to fund the cost of adapting a home for wheelchair access or other specialist medical equipment required. It may be invested to generate further and ongoing income.
The premium is either an annual premium payable in full on the inception of the policy or a monthly premium, it depends on the underwriter who can consider the enquiry.
Yes. We can cover clients who travel with their occupations, including travelling to Hazardous countries.
This product can cover between 60% and 75% of your salary.
It is possible to obtain 100% of salary cover in respect of group policies.
Yes, in many but not every case. We are happy to talk to anyone not UK resident and as we always do handle your needs on a bespoke basis.
The geographic scope of this availability is primarily governed by Lloyd’s of London regulations, which change from time to time.
Please contact if you wish to discuss with us on 01280 841430 – Option 4
