Income Protection

In times of involuntary unemployment, sickness, accident or injury, the loss of a regular income can make it extremely difficult for individuals and their families to maintain the lifestyle that they enjoy and still pay their bills.

Income Protection Insurance provides the protection they need against further financial troubles until they are able to return to work.

Key facts and figures

• 755,000 people were made redundant in the UK between June 2002 and July 2003.1
• Bank of England figures show that over a trillion pounds (£1,000,000,000,000) was outstanding on mortgages, credit cards and loans.1
• The Institute of Fiscal Studies claims that half of the UK's population has savings of just £600 or less. More worryingly, it claims a third of the population has no savings at all.1
• Nearly two million people of working age will be off work for at least six months at any one time through sickness and disability.2
• Over two million people are currently claiming income support.2
• 800,000 people are claiming JobSeeker's Allowance.2
• Over two million people are claiming Incapacity Benefit.2
  
• Over two million people are claiming Disability Living Allowance.2
• Four out of ten people will be diagnosed with cancer at some stage in their life.3
• Court actions for home repossessions have reached their highest level for nearly six years, with 20,667 new mortgage possession actions lodged in the fourth quarter of 2004.4
  

Source: 1 Association of British Insurers 2 National Statistics Online 2004 3 Cancer Research UK 4 Dept for Constitutional Affairs

Income protection features and benefits

The distinguishing characteristic of Income Protection Insurance from Assurant Solutions is its flexibility. Consumers may select the level of cover they need to help meet their regular monthly outgoings during a period of involuntary unemployment, sickness or disability.

• Payment paid directly to the consumer to help meet their individual outgoings.
• Flexible payment methods - for example, Direct Debit or Credit Card - to suit the needs of the individual.
• Flexibility in levels of cover enabling the consumer to select a monthly cash benefit ranging from £150 up to £1,000 a month, according to their individual needs.
• The consumer is free to choose how they spend their monthly benefit.
• Benefit paid until the consumer returns to work or up to a maximum of one year (whichever is sooner).
  
• Income Protection is a non-taxable benefit.
  
• Initial 90-day waiting period after the policy has been taken out before a claim can be made.
  
• 30-day deferred period for both unemployment and incapacity claims during which no benefit is paid.
  
• A 30-day cooling off period allowing the consumer to ensure the cover is right for them.

Eligibility

The consumer has to be aged between 18 and 60, and must have been in work for at least 16 hours per week for the last 6 months in order to take out a policy.

Assurant Solutions also provides cover for the self-employed or for the increasing members of the working population employed on a contract basis.

Exclusions

Our main exclusions and terms and conditions are highlighted below. For a full list of the exclusions then please refer to the policy terms and conditions. If you would like a copy, simply click on "contact us" and detail your request.

Exclusions include:

• Pre-existing medical conditions;
• Voluntary unemployment;
• Unemployment due to seasonal work;
• Any claims caused by or resulting from being under the influence of drugs and/or alcohol.