Like most insurance, the cost of your income protection insurance will depend on lots of personal factors. Your age, your health and what you do for work will all play a part in what the insurer charges you. Usually, the riskier your job or the higher your health risks, the more you’ll pay each month in income protection insurance premiums.
What could make an income protection policy more expensive?
The price of income protection is linked with how likely you are to fall ill, and therefore how likely you are to make a claim. So this could be impacted by things such as your age, your general health, whether you smoke or vape, and the type of job you do.
In most cases, the younger and healthier you are when you buy an income protection policy, the cheaper it’ll be. Did you know, income protection for a 25 year old could cost as little as £10 a month! (When we said it’d be cheaper than last weekend’s Deliveroo order, we really weren’t joking).
But the price also depends on what income protection features you choose
Your risk is one factor in the price you’re charged, but the other is how you build your income protection policy. For example, the higher the cover amount you choose (or the more of your income you want replaced each month), the higher your premium will be. The longer you want your income protection policy to pay out for if you fall ill, the more expensive your policy will be. There are lots of factors that go into this, so we’d always recommend speaking with a financial adviser for help building the right type of income protection policy within your budget.
How do I get a financial adviser?
Financial advisers really are the experts when it comes to income protection insurance. You may already have one, but if you don’t, you’re likely thinking 'how do I find a financial advisor I can trust?’
That’s where we can help! We’ve partnered with Caspian insurance, an expert team of financial advisers who are providing free support on all things income protection insurance! They have a tool which calculates the cost of income protection insurance for you, and they have a team who can help you build the right type of policy based on your finances and personal circumstances.