Can income protection insurance payout until retirement?

I have had accident and sickness cover for my mortgage (payment protection plan) but this plan could only payout for 12 months. How long can income protection payout? Is it until I plan to retire, say until age 65 or 70? Thanks.

Question asked by Peter Graham
Compare Top 10 UK
 Protection
Insurers
 
Takes approx. 60 seconds
Type of Policy
Income Required
per
month
Date of Birth

Answered by Andrew Jenkinson

Income Protection length of cover options

Yes, absolutely, that is the one of main benefits of an income protection plan over a payment protection policy. For serious medical conditions 12 months of cover usually isn’t anywhere near enough. On long-term plans average claims lengths are usually measured in years, not months.

Insurers used to set the maximum age the plan could run until at age 65 as this was ‘the’ retirement age. However, as we are starting to work later and later many insurers will even offer cover up until age 70 now. It makes sense to set the policy termination age equal to the age you expect to retire.

Thus, with income protection cover your lifetime earnings can be protected. If, for example, you were off work for 5 years the plan would payout every month for 5 years (less your chosen deferred/excess period). Essentially, the policy continues to payout either until you are well enough to return to work or you reach the retirement age set on the plan (i.e. the policy termination age).

Aligning your policy end date to your expected retirement date

If you expect/plan to retire earlier than 65 or 70 years of age then it is perfectly fine to set the policy termination age earlier. Given that the chances of becoming ill are relatively higher post age 60, bringing down the termination age of the plan can lower the monthly premiums significantly.

income protection to retirement
 
retirement planning
 
This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
Compare Top 10 UK Insurers
  Takes approx. 60 seconds
 - 
Need help? 
Call us on 

Frequently Asked Income Protection Insurance Questions

 
I am an airline pilot and wondering if there is a specific pilots income protection policy available....
 
I want an income protection plan as I only get 6 months of full sick pay and then half pay for another...
 
What is a common age for an income protection policy to finish? Are there any important factors to consider...
 
I’m looking to get Income Protection insurance as i think it’s a great way to protect my earnings...
Need Help? Live chat now and get an instant answer from our Experts...

Neil
Pensions

Victoria
Insurance
Our Latest Reviews
Elizabeth Owen
10/10/2017

Sam was knowledgeable and attentive and spent a long time explaining and working out what Income Protection insurance would be best for me.

Adam Doree
04/10/2017

I researched Drewberry to make sure they would be likely to add value to the confusing process of finding suitable insurance – and they delivered completely; I was very impressed and feel like they added real value in terms of consultation and guidance. Would recommend without hesitation.

Jonathan Moss
04/10/2017

Will is fantastic went through everything in detail really helpful and ultimately ensured that I went with the best product for my circumstances. Thanks!

We are rated 4.9/5 based on 1129 independent client reviews.
To read more of our independent client reviews click here →
REVIEWS
EXCELLENT
4.92 / 5 Average
1,263 Reviews
Anonymous
Overall Rating
SAM Carr was exceptional, he made my life very easy by explaining all the details very clearly whilst giving me the best advice possible for myself.

Would recommend to a friend!
Anonymous
Overall Rating
Provided the advice & guidance that I needed
M
Overall Rating
The overall experience which I have had can be summarized by Professional, Swift and friendly. I would recommend the service to others.
D
Overall Rating
Extremely helpful and rapid service at short notice.
A
Overall Rating
Very clear explanations of the options and then efficiently processed the transaction