Does Income Protection Cover Diving?
Question asked by Lisa Hunt
If I take out Income Protection now and need to make a claim will I still be eligible for any benefits I might receive from the government?
If you are unable to work due to accident or sickness, Income Protection Insurance will pay out a monthly benefit. This benefit would get paid each month on top of any state benefits you qualify for. It would continue to be paid out until you are fit enough to return to work, or you reach the maximum payout period for your policy.
The benefit amount can be used to replace lost income and ensure you can keep up with your monthly outgoings. Outgoings that you might not be able to pay just on Government Employment Support Allowance (ESA).
It’s important to note that a claim may affect your entitlement to means-tested state benefits. However, it won’t affect contribution based ESA which is based on your National Insurance contributions. As benefit rules do change from time to time you would need to clarify this with Jobcentre Plus.
If you have insured the maximum amount allowed by an insurer, the insurer may reduce their payout by the amount of ESA that you are claiming. This is so your continuing income isn’t over the maximum amount they allow. The idea behind this is that you shouldn’t claim more than your income was before a claim.
If you are considering taking out Income Protection and want to better understand your options please do not hesitate to pop us a call on 02084327333 or email help@drewberry.co.uk. Our team of expert independent advisers are on hand to help.