Income Protection in Preston
Your income is what pays the mortgage, the bills and everything else. So what happens if illness or injury stops you working for months? Income protection is designed to answer exactly that question, paying you a regular replacement income if you cannot work due to illness or injury, so life can carry on while you recover. At The Mortgage Room we help people across Preston and Lancashire put income protection in place as part of getting their whole financial picture right.
What is income protection?
Income protection is an insurance policy that pays you a regular, usually monthly, income if you are unable to work because of illness or injury. Unlike a one-off lump sum, it keeps paying, up to a set proportion of your earnings, until you are able to return to work, you retire, or the policy term ends, whichever comes first. It is arguably the most fundamental protection there is, because almost everything else depends on your ability to earn.
How payouts work
If you make a valid claim, the policy pays a percentage of your income, typically up to around 60%, after a waiting period known as the deferred period. Payments continue while you remain unable to work, according to the policy terms. Because the benefit is designed to replace lost earnings rather than provide a windfall, it is capped as a proportion of your income, which keeps the cover realistic and affordable.
Deferred periods explained
The deferred period is the gap between becoming unable to work and the policy starting to pay. You might choose a shorter deferred period for cover that kicks in sooner, or a longer one to reduce the premium, especially if your employer provides sick pay for an initial period. Choosing the right deferred period is a balance between cost and how long you could manage on savings or sick pay. We help you set it sensibly.
Do you need income protection?
It is worth serious consideration if you rely on your income to cover the mortgage and bills and you could not sustain them for long if you stopped earning. Employer sick pay and state benefits are often far less than people expect and do not last. If you are self-employed, the case is even stronger, because there is usually no sick pay at all. We help you look honestly at how long you could cope without your income, and whether cover makes sense.
- Replaces a proportion of your income if you cannot work.
- Keeps paying until recovery, retirement or the end of the term.
- Especially valuable for the self-employed and sole earners.
- Can work alongside critical illness cover and life insurance.
Why Preston workers choose The Mortgage Room
We arrange your mortgage, so we know what your income needs to cover and for how long. You get honest, plain-English advice, cover matched to your real situation, and appointments to suit you including evenings and weekends. We help people across Preston and the wider area. Explore all our protection advice.
Income protection FAQs
How much of my income will it replace?
Typically up to around 60% of your earnings, though this varies by policy. The benefit is capped as a proportion of income so it replaces earnings rather than providing a windfall.
What is a deferred period?
It is the waiting time between becoming unable to work and the policy starting to pay. A longer deferred period usually lowers the premium; a shorter one starts paying sooner.
How long does it keep paying?
Depending on the policy, it can pay until you return to work, retire, or the term ends. This is what sets it apart from a one-off lump sum.
Do I need it if I am employed?
Possibly. Employer sick pay is often short and modest, so income protection can bridge the gap for a longer absence. We help you check what you would actually receive.
Is it worth it if I am self-employed?
Often especially so, because there is usually no employer sick pay at all, leaving you reliant on savings if you cannot work.
Can I claim more than once?
Many policies allow multiple claims over the term, subject to the terms and any deferred period each time. We will explain how your policy works.
Do you charge for your advice?
We discuss any costs with you clearly and up front, with no obligation. Fee wording is being confirmed under our network, The Right Mortgage.
Protect the income everything depends on
Book a free, no-obligation chat and we will help you work out the right income protection for your situation.