Income Protection Maximums
Posted on February 5th, 2011 in All Posts, Income Protection, Permanent Health Insurance, Ways to Protect Income. The maximum amount of cover allowed under an income protection insurance policy varies from insurer to insurer. However the normal limits that apply are between 60% and 70% of you annual earnings. Friends Provident base these limits on net earnings and these limits are shown below:70% of the first £10,000 a year of your pre-incapacity earnings plus 60% of the next £20,000 a year of your pre-incapacity earnings plus 50% of the next £120,000 a year of your pre-incapacity earnings plus 40% of your pre-incapacity earnings over £150,000 a year.
However at the time of claim you normally need to supply proof of earnings before a claim will be paid. This can be be difficult sometimes for the self employed. Also if you move to a lesser paid job it is important to let the insurer of broker know so that they can check your eligibility.
Use the form on the right to get quotes on income protection insurance.
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