Insurance by its very nature can seem complex. There are also many different types of insurance products including Income Protection. We make a point of making a wide range of documentation available to help you make an informed decision about your requirements.
However, gathered here in one place, are the most common questions we are asked. There are not exhaustive, but seek to clarify some common areas of confusion.
What does DG Mutual’s income protection insurance cover me for?
Simply stated, income protection insures part of your income should you be unable to work. Whether you rent or own a house, income protection will help you meet your essential monthly bills and possibly a bit more. The money is available for you to spend how you like. Unlike other policies, our cover will pay out until you’re fit to work or reach retirement age, whichever comes first, as long as you continue to pay your premiums.
Can I get cover if I am self-employed?
Yes. DG Mutual specialises in providing income protection insurance for the self-employed, business owners and professionals.
If I have a job, won’t my employer pay me while I am ill?
Many employers only provide the minimum benefit which is Statutory Sick Pay for 28 weeks. The current rate is less than £90 per week. It doesn’t go far and isn’t enough to cover outgoings. After 28 weeks, it’s possible your only income will be the Employment and Support Allowance. The rate paid varies but can be as little £50-£60 per week. Income protection cover removes the stress of having to maintain your lifestyle while on benefits. Cover can also be structured to start when employer benefits stop.
Is critical illness or income protection insurance better?
They are two distinct types of insurance with different purposes. Critical illness cover has nothing to do with your income and typically pays out a lump sum against a life threatening or terminal illness. A limited number of conditions are covered, with cancers being the main group. Psychological, mental and chronic conditions are not covered by critical illness. Income Protection however covers you for just about any condition that prevents you working and provides a regular income for as long as you’re unable to work.
Is income protection the same as payment protection?
No. Payment Protection is typically offered by loan and mortgage companies to allow you to protect your payment to them and nothing else. It does not provide you with an income which you can spend how you see fit. With payment protection the payment goes directly to the loan or mortgage provider. Income Protection is paid to you.
What percentage of claims does DG Mutual pay out on?
Income Protection pay outs by all providers are among the highest of all types of insurance. DG Mutual regularly pays out on more than 95% of claims, higher than the sector average for income protection and much, much higher than for critical illness insurance.
Does income protection insurance also over redundancy or unemployment?
Our policies only cover policy holders for accident and sickness as is the norm for income protection cover. If you’re worried about redundancy or unemployment specialist insurance is recommended.
Can I get cheaper income protection insurance elsewhere?
Ultimately you can only compare premiums once you have been provided with a personalised quotation based on your personal circumstances. Be careful to compare policies in detail as they are unlikely to be the same. DG Mutual provides 2 levels of cover, with Pure Income designed to provide cover for those looking for cheaper premiums.
Will state sickness benefits not cover me if I am ill?
As mentioned above, statutory benefits are so low they don’t allow you to cover your essential outgoings.
Should I take out income protection long term or short term?
Our insurance covers you for as long as you need it to and multiple claims can be made. Claims can start as late as 52 weeks after you become unable to work whether you take out Pure Protection or Income Protection. You never know when illness is going to strike. In addition, our traditional Income Protection insurance generates a lump sum on retirement. Either policy can be taken out until retirement.