Income Protection isn’t just available for those in employment. People who are unemployed or work less than 16 hours are also able to get income protection or house persons cover as it is also known.
Although you may not be in paid employment you may need an income if you are unable to carry out your daily tasks due to incapacity.
As a house person, your role may not be financial, but there will be financial implications if you are incapacitated and unable to contribute to your home. For example, childcare and cleaning costs. Would your partner have to pay someone to take on this work or would they have to take time off work themselves?
Income protection for the unemployed or house persons cover, works on the same principle as income protection, however it is subject to a number of restrictions.
Although the condition of the policy will vary among providers, you will usually find that:
- The maximum benefit you are entitled to is £20,000 per annum
- Your claim is assessed based on your capability to carry out activities of daily living.
Activities of daily living may include:
- Bending - such as loading and unloading a washing machine.
- Communicating – the ability to hear and speak sufficiently, with the ability to hold a conversation in your first language.
- Reading – the ability to read a daily newspaper with visual aids if necessary.
- Fine Motor Control – the ability to remove 5 tablets from a blister pack.
- Walking – 200m on flat ground without stopping due to breathlessness or serve pain.
- Lifting and Carrying – a 2.5kg bag of potatoes from mid shin height to waist height and carrying it five metres.
How you use the monthly benefit is up to you. You may choose to spend the money replacing your contributions to your home, for example, paying someone to do the school run. The benefits will be paid to you each month tax-free until your policy ends or you recover.
Endsleigh can provide you with detailed advice on the benefits of income protection insurance along with ensuring your cover is adequate for your specific needs. As our advisers are independent they are able to search the UK market on your behalf looking for the most competitive solution.
Click here to speak to an adviser.
