Answered by Tom Conner
Income protection payouts are generally tax free. If you pay for the premiums yourself from your net income then the money has already been taxed. This is why most insurers generally only allow you to insure 70% of your gross income as it works out as approximately the same as your net income.
Some self employed people or company directors pay for their income protection premiums via their business. This means that the benefits are paid out to the company and would be subject to tax. If you chose this option it would be best to consult a tax advisor or accountant for advice.
If you would like any further information on income protection please contact our insurance advisers on 02084327333. We have access to insurance plans from the whole market so can find the policy which is best for you. You can also get an online quote for income protection on our website.
Frequently Asked Income Protection Insurance Questions
Josh at Drewberry was extremely helpful and friendly in answering my many questions about the policy before I went ahead.
Drewberry was the only website I could find that would give me an indicative Relevant Life cover quote. Victoria at Drewberry was very helpful throughout the whole application process.
They gave me good advice and weren’t pushy! I felt that I was getting what I asked for and I’m happy with the final product that I bought.