My husband and I are looking to take out Income Protection to cover our earnings should we become ill. Is it possible to take out joint Income Protection?
Currently, Income Protection Insurance can only be taken out as an individual plan as the policy needs to be written on your individual circumstances.
If you and your partner would both like cover then it makes sense to insure an amount equivalent to each partner’s contribution to household costs. The maximum amount of cover each partner can take out is 65% of gross (pre-tax) monthly income.
When setting up Income Protection cover the insurer needs to consider your specific occupation, income level and health, which would make taking out a joint income insurance plan fairly complicated.
Although not strictly Income Protection, some insurers do allow joint Mortgage Payment Protection policies to be set up to cover joint mortgages. On this type of cover, it is important to note that some insurers may advertise a joint plan (quoting one premium) but actually set-up two single plans splitting cover between each partner.
Whether this is right for you depends on your circumstances, so it always pays to get expert advice.
Good interaction between client and advisor. Drew knew his brief; articulated and explained the issues clearly and answered questions fully. This all helped me clarify what I wanted and so we agreed on our action swiftly. I am a very satisfied client. Thank you.