What is an income protection deferment period?

What does this deferred period actually mean and will my claim be backdated if there is a deferment period? Is it cheaper to have one?

Question asked by Josh Lacey
Compare Top 10 UK
 Protection
Insurers
 
Takes approx. 60 seconds
Type of Policy
Income Required
per
month
Date of Birth
Loading your options...
Thank you for using our Quote Tool
If you need some help, just call us!
T: 0208 432 7333
Our in-house Experts are here to provide FREE impartial advice!
Our Experts can answer all your questions
Our Experts can send you more appropriate options based on your personal circumstances

Very important if you are either Self-Employed or a Company Director.

Our online quote tool is good but our Experts are better

Oue Experts have access to far more insurers and can often find a better deal offline.

Saves you time, let our Experts do what they are best at

Answered by Andrew Jenkinson

Income Protection: The deferred period explained

The deferment period (also known as the excess period on short term income protection plans) is the period of time you have to be out of work due to illness or injury before any benefit will start accumulating and any claim payment will be made.

All other things equal the longer the deferred period on the plan the lower the income protection premiums as you will have to be unable to work due to illness or injury for a longer period of time before benefit payments commence.

How long after the deferred period is a claim paid?

With most longer term income protection policies the shortest deferment period available is 4 weeks, benefit payments are made in arrears and thus your first payment would not be until week 8. With short term income protection (also known as accident, sickness and unemployment cover) there is often an option to choose a deferred period with Back to Day 1 cover which means when a claim arises benefit payments will be paid back to the start of your claim.

Find out more…

For more information please see the page: Setting the deferred period with income protection or alternatively get in contact with one of our expert advisers who can answer any questions that you may have on 01273 646 484 or help@drewberry.co.uk

deferred period
 
excess period
 
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’m considering taking out income protection, does this work in the same way as other types of...
 
I’m thinking about taking out an income protection policy. I can’t seem to find any information...
 
I’m a 27 year old woman and have a family history of cancer. I’m hoping to be able to get...
 
What insurance can cover my salary if I suffered sickness or had an accident? I do get some sick pay...
Need Help? Live chat now and get an instant answer from our Experts...

Neil
Pensions

Victoria
Insurance
Our Latest Reviews
Andrew Giles
10/04/2018

From start to finish a very professional and courteous outfit. A very efficient company with a no nonsense approach. Would recommend.

Mark Burbidge
13/04/2018

First class service from start to finish. Sam Carr was very helpful in setting up my new insurance policies. He kept me up to date throughout the process and provided full explanation and advice on the products and was always available to help.

Doug Muirhead
10/04/2018

Excellent personal service from Matthew Giles, made sure we received a tailor made quote that ideally suited our requirements as a family.

We are rated 4.9/5 based on 1512 independent client reviews.
To read more of our independent client reviews click here →
REVIEWS
EXCELLENT
4.92 / 5 Average
1548 Reviews
R Steer
Overall Rating
Josh, Nick & Sam helped me set up PHI & Life insurance when I set up my own company. The application process wasn't straight forward due to my medical history, but the team made everything as simple as possible.
C Ash
Overall Rating
I have not started my health cover yet, bus so far the introduction has been very efficient and speedy.
G White
Overall Rating
Clear and concise information
D Muirhead
Overall Rating
Excellent personal service from Matthew Giles, made sure we received a tailor made quote that ideally suited our requirements as a family
S Walker
Overall Rating
Great service, independent advice, not pushy and very consultative. I would have no hesitation in recommending.