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Income Protection, Redundancy cover and Covid-19

A lot of our clients have questions or concerns regarding existing Income Protection insurance policies and Redundancy cover. We've put together a short article on FAQ which we think you might find helpful.

What is Income Protection?

Income protection insurance provides a monthly income if you are unable to work due to sickness or injury. It safeguards your biggest asset – your ability to earn.

Can I claim on my Income Protection if I’m unable to go to work due to COVID-19 lockdown?

The short answer is no. To be able to claim on your policy, you need to be unable to work due to sickness or injury.

How about if I’m made redundant?

You can claim on your insurance if you have Redundancy cover, which is a separate benefit to Income Protection. If you already have Redundancy cover - and the policy’s stand-down period has finished - you are able to claim.

Can I take out Redundancy Insurance now?

Some insurance companies are still offering Redundancy cover, but it’s important to note the following:

  • You will be required to disclose whether you are aware of any pending redundancy or liquidation
  • There will be a six months stand-down period, meaning that you will be unable to claim during that time
  • Voluntary redundancies and self-employed clients are excluded

What are my options?

If you are foreseeing financial hardship and you are concerned about being able to afford your insurance premiums, please let me know. Some insurance companies are offering relief packages to those affected by COVID-19 and the lockdown period. We can also look at restructuring your cover so that it better fits your needs.

The sooner you get in touch, the better. We’re here to help.



 

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