Can I take out income protection insurance if I am on the furlough scheme?
Are you currently on the furlough scheme? Thousands of employees across the UK are on the job retention scheme due to the impact of coronavirus. However, what happens when the scheme comes to an end?
It’s understandable that employees will be worried about redundancies once the furlough payments stop. There has been an increase in enquiries regarding income protection but can you take this out whilst on the furlough scheme and will it protect you against unemployment?
What is income protection insurance?
Income protection offers you financial protection if you are unable to work due to illness or injury. Some policies also include an element which covers redundancy. Your policy is likely to include a number of caveats so it’s important to read and understand the terms and conditions before signing up for any insurance policy.
Will income protection protect me if I’m unable to work due to coronavirus?
This is really a question for people who already have an income protection policy. If you had a policy in place before the start of the pandemic then depending in your circumstances you may be able to make a claim.
Most income protection policies include a deferred period. This means you must wait before payment is made. This is typically from 1-3 months. If you are ill from coronavirus for just a few weeks before returning to work, you wouldn’t be able to claim. You may be covered by your employer’s sick pay, if not you can claim statutory sick pay. Should the effects of coronavirus last longer, and you are unable to work for this reason then you should be able to claim.
If you had a policy in place that covered redundancy and have lost your job because of coronavirus, you should also be able to make a claim.
Can I take out a new policy now, even if I’m participating in the furlough scheme?
Some providers are still accepting applications for income protection insurance. However it is worth noting that most of them will not include the unemployment element. These policies will only cover you if you are out of work due to illness or injury.
Finding the best income protection policy
The impact of coronavirus is likely to continue for some time, which means that insurance providers may change their policies. It’s extremely important to double check what the policy does and doesn’t cover to make sure it meets your expectations.
So Smart Protect can give you fee-free advice from a specialist income protection adviser, to help find you the most suitable product for your needs.
Simply visit the following link to get your quote today: https://www.sosmartmoney.co.uk/insurance/income-protection/income-and-mortgage-protection/