Income Protection: What is Back to Day One Cover?

I am looking to take out Payment Protection Insurance or Short-Term Income Protection policy and wanted to know what ‘back to day one’ cover means? Does this still have a deferred period?

Question asked by Shahram Shirazi
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: 02084327333
Our in-house Experts are here to provide Whole of Market 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

The deferred period explained

With Short-Term Income Insurance / Payment Protection Insurance it is very common to have a deferred period of 30 days. This means that the plan does not start ‘accumulating benefit’ until after 30 days of being off work.

After the 30 day excess period is up (i.e. on day 31) the plan will start accumulating benefit as if you have just started a new job where you get paid at the end of the month.

Thus, with a 30 day deferred period the first payment from the insurer would be received on day 61 (for the previous 30 days of lost earnings).

How Does Back to Day One Cover Work?

If you decide to include ‘back to day one cover’ then you still need to be off work for 30 days for the plan to become eligible for a payout but the insurer will ‘backdate’ the claim to ‘day one’, so that the benefit effectively starts accumulating from day one.

What this means is that if you select a 30 day deferment period with the back to day one option selected then the first payment will be received on day 31, rather than on day 61 without the back to day one option.

Selecting this option is very popular with individuals who would not receive any period of full sick pay from their employer (i.e. they would only receive statutory sick pay).

Please note that including this option can increase with monthly premium by as much as 10% with some insurers.

Further Information

For more information please see the page: Setting the deferred period with income protection or give one of our expert advisers a call on 02084327333 to discuss any questions you have further.

deferred period
 
excess period
 
back to day one cover
 
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 thinking about taking out Income Protection to cover my outgoings if I can’t work....
 
What is the minimum deferred period I can have with sickness insurance? I really need it to pay our from...
 
What insurance can cover my salary if I suffered sickness or had an accident? I do get some sick pay...
 
What types of accident and sickness cover are available and how does this type of insurance work? Is...
Need Help? Live chat now and get an instant answer from our Experts...

Neil
Pensions

Victoria
Insurance
Our Latest Reviews
Martin Johnson
24/04/2019

A simple policy well explained good impartial advice and knowledge done with a smile! Many thanks.

Julia Bickley
19/04/2019

I found the service very friendly, professional and those I spoke to were clearly knowledgeable and explained things in an appropriate way. Great communication, and very personable staff. I would use again without a doubt.

Valerie Graham
17/04/2019

Excellent – very helpful and knowledgable. No sell, just education and assistance. Would highly recommend!

We are rated 4.9/5 based on 2198 independent client reviews.
To read more of our independent client reviews click here →
REVIEWS
EXCELLENT
4.92 / 5 Average
2198 Reviews
A Teehan
Overall Rating
I dealt with Jake and he was very helpful and answered all my queries, very happy with the service and would highly recommend.
A B
Overall Rating
Quick, easy friendly service. Egle was amazing.
R Whyte
Overall Rating
Great, quick and easy and very professional
A Evans
Overall Rating
Very customer focussed, and very professional to deal with.
A Chappell
Overall Rating
Very good company all the staff are very polite and helpful. Oliver has been very helpful and made it very easy for me to understand the policy that I was buying. Many thanks to all the team.