Income Protection Insurance

Teachers, Surgeons and Investment Bankers.

This post is sponsored by Endsleigh.

When it comes to income protection insurance, some teachers may have found they are classed in the same risk bracket for stress as surgeons, investment bankers and sales managers.

Unsurprisingly the subsequent cost of this attitude by income protection insurers towards the teaching profession is quite considerable often leading to restricted levels of cover or increased premiums.

Fortunately though there are insurers on the market who do not take this stance and understand that extra pressure at work doesn’t mean you won’t be able to do your job.

The last thing teaching professionals want is to leave themselves exposed to financial worries should illness or injury prevent them from working. Income protection insurance will ensure that once the employer’s sick pay ceases, teachers continue to receive an income until they are well enough to return to work.

There are a number of income protection products on the market which will only pay out if you are unable to do any job at all. This could mean that if you are unable to continue teaching due to an illness or injury, such policies may not pay out.  Therefore, you may have to take a job you otherwise wouldn’t have wanted to, for example, working in a less active role, perhaps in a shop behind the till.  There are providers however who will pay out for as long as you are unable to do your work as a teacher. They won’t expect you to work in a role you are over qualified for.

If you are off long term sick and your employer’s sick pay comes to an end, you would need provisions in place to maintain your current standard of living and meet your regular monthly outgoings such as mortgage payments and utility bills.

Without financial support people often turn to their savings, take a different, less qualified role or return to work before they are ready. Unfortunately current state benefits provide little comfort when facing the prospect of long term sickness. This is particularly important for supply teachers who generally receive no sick pay benefits from their employers.  A good income protection policy will allow you to fully recover before returning to work – a benefit both to you and to the children you teach!  Some policies even offer rehabilitation benefit which allows you to return to work in a reduced capacity for a period of time whilst you are recuperating, but still ensuring that your full benefit continues to be paid. 

The flexibility income protection insurance affords, allows you to tailor the policy to your exact needs, taking into account any existing benefits, your planned retirement age and how much income you need each month.  This allows you to make sure that the cover is as cost effective as possible.

How does income protection support you?

·       Regular tax free replacement income up to 70% of current salary if you are unable to work as a teacher.

·       A waiting period enables you to choose when you would need your replacement income be it straight away or when your employer’s sick pay benefits cease.

·       Financial support is still available if you return to work part time or to a lower paid role.

·       Amend your policy to suit your lifestyle. Increase or decrease you cover or waiting period.

·       Choose how long you want your income protection insurance policy to support you, 10 years, 20 years or until your retirement date.

·       Spend your monthly benefits how you choose. Use them to meet your mortgage payments, rent or other monthly outgoings.