Income Protection

Balens cover all types from Permanent Health Insurance giving long term disability cover, to shorter term Personal Accident and Sickness Insurance, Lump Sum Disablement Covers to Friendly Society Income Plans. All have positive and negative points to consider, and to do this our independant and impartial stance can support and guide you through the process.

Did you know that the Basic Statutory Sick Pay for a single Employed  person is based on gross average weekly earnings (0 - 28 weeks):-

*Up to £87 - NIL

*£87 or more - £72.55?

Any Incapacity Benefit received after 28 weeks of disability is liable to income tax and is only paid if you are assessed through the Department for Works and Pensions as being unable to work at all!

Whereas, Self Employed  people receive Short Term Incapacity Benefit at the lower rate, which, for a single person is:

*£61.35 per week

If a self employed person cannot perform their occupation but is assessed as being capable of working, they will no longer be eligible for incapacity benefits.

An Income Protection Plan offers a means of replacing your income to help maintain a manageable lifestyle in the event of incapacity. Certainly, being stressed about money doesn't help the road to recovery! As you can see, the Government do not do a lot for you.

There are many factors to consider when choosing an income protection plan, and independent financial advice can help you find the best deal to meet your needs. There are many plans and types of contract to consider. 

In particular, you should ensure that you will have taxable income for the year ahead, and adjust your sum insured for weekly benefits, so that you are not overinsuring. You must have sufficient taxable income after expenses  to support your chosen sum insured - Insurers will pay up to 60% of this figure.  See our section on Claims also about this.

The small print in some of them may means that you will not get what you thought you would get, so quality unbiased help is crucial to protecting your earning capacity to pay the bills, which will keep coming whether you work or not!

Call us on 01684 581 876   or   email    carol@balen.co.uk    or   db@balen.co.uk

* 2007/8 tax year