Salary Protection

Do I need salary protection?

Salary protection also known as pay protection, income protection or payment protection insurance is usually necessary for anyone who has regular outgoings and little or no savings. Salary protection can provide a replacement income in the event of accident, sickness or unemployment. The monthly benefit is normally restricted to a maximum 75% of Gross income or less, with an overriding monetary maximum of £2500 per month per policy.

Premiums for this type of redundancy cover are not usually affected by age, smoker status or gender. At UKinsuranceNET we pride ourselves in taking a flexible approach to arranging redundancy insurance, and we have been known to provide cover for up to £10,000 per month total benefit.

The benefit from salary protection insurance is generally paid free of income tax as the premiums are generally paid from your taxed income. Benefit periods vary but the unemployment cover element is usually restricted to 12 months although there are some 24 month policies available. Accident and sickness cover however, can be paid up to age 65 through a permanent health insurance policy, as most normal short term salary protection policies, as stated above restrict benefit to 12 or 24 months.