Income Protection Insurance

Nestled in the heart of Swindon's Old Town professional district, MMB Finance is an independent financial adviser with a rich history dating back to 1996. Our commitment is to cater to your unique financial needs by offering comprehensive advice across all facets of your finances, including advising on income protection insurance.

What Is Income Protection Insurance (IPI)

Income Protection Insurance (IPI), formerly known as Permanent Health Insurance (PHI), serves as a financial safety net. Designed to replace your income during prolonged illnesses or disabilities, income protection insurance ensures that life's uncertainties do not derail your financial stability. If you are contemplating the extent of coverage you might need, especially in the context of family life insurance, our Swindon-based income protection insurance advisers are just a call away.
Income Protection Insurance Enquiry
To make an enquiry about advice for Income Protection Insurance, please complete this form with as much detail as possible. We will get back to you shortly.
Income Protection Insurance

How Does Income Protection Insurance Work?

Once an income protection insurance policy is activated, the policyholder receives a stipulated income after an initial waiting period. This waiting phase, often termed as the deferred or elimination period, typically spans 4, 13, 26, or 52 weeks. It is calibrated to align with the duration for which employers continue salary payments or, for the self-employed, the period they might rely on savings. The income protection insurance benefits continue until either the policy term concludes (usually around retirement age, i.e., 60 or 65), the policyholder resumes work, or in the unfortunate event of their demise.

The Tax & Pension Implications of Income Protection Insurance

The ever evolving landscape of tax regulations and pension laws can significantly influence income protection insurance planning. For instance, claim benefits derived from employer-sponsored group schemes are channelled through the PAYE system, categorising them as earnings, which subsequently become pensionable.

By contrast, individual policy claim benefits enjoy a tax-free status and are not deemed  to be earnings. This distinction implies that, during a claim, individuals can only gain tax relief on their contributions. A similar framework applies to premium/contribution waiver insurance.

Alternatives To Income Protection Insurance

Whilst income protection insurance offers a robust safety net, it is prudent to consider other protective measures to fortify your financial well-being. These include:
  1. MPPI Protection: Mortgage Payment Protection Insurance (MPPI) is designed to cover your mortgage payments if you are unable to work due to illness, injury, or redundancy.
  2. Critical Illness Insurance: This provides a lump sum payment if you're diagnosed with a specific illness, ensuring financial stability during challenging times.
  3. Private Medical Insurance: A safeguard against potential health-related expenses, ensuring timely and quality medical care without the financial strain.

Local Income Protection Insurance Adviser In Swindon

At MMB Finance, we are not just financial advisers; we are your neighbours, deeply rooted in Swindon and its surrounding regions. In a world rapidly shifting to impersonal digital interactions, we stand firm in our belief that face-to-face consultations offer unparalleled value to our clients.

Our commitment to this personal touch ensures that we truly understand your unique needs when looking at income protection insurance, so that we can offer you solutions tailored just for you.

For a detailed, personalized consultation on Income Protection Insurance and more, reach out to our adept team today. Let Swindon's MMB Finance help protect your financial future.

Frequently Asked Questions About Income Protection Insurance