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Will a claim under a Short Term Income Protection policy affect any State benefits to which you may be entitled?
No. Whilst your Short Term Income Protection policy replaces part of your income, the insurance payouts you receive do not qualify as income in the eyes of the Benefits Agency or the Inland Revenue.
Hot Topics
- What is Short Term Income Protection Insurance?(Also known as Accident Sickness and Unemployment Insurance)
- Short Term Income Protection Insurance pay a tax free monthly income for up to 12 months if you were off work due to sickness, accident, or unemployment.
- How long should you insure for?
- Short Term Income Protection Policies are renewed annually. So you really only need to plan one year ahead.
- For how long will the policy continue to provide income
- Short Term Income Protection Insurance will provide income if you are off work and the income will continue for up to 12 months or cease when you return to work, whichever is the sooner.
- Should you insure for accident and sickness or accident, sickness and unemployment?
- The Short Term Income Protection Insurance Burgesses offer gives you the option of insuring yourself for:
- Will a claim under a Short Term Income Protection policy affect any State benefits to which you may be entitled?
- No. Whilst your Short Term Income Protection policy replaces part of your income, the insurance payouts you receive do not qualify as income in the eyes of the Benefits Agency or the Inland Revenue.
One of the main reasons for having Short Term Income Protection Insurance is the long-term trend of the reduction in state benefits.
If you are one of the “lucky” ones who qualifies for a state payout, Incapacity Benefit basic and sick pay and will provide around £65 a week for the first year and £72 a week thereafter. Could your family manage with that?
Think about the following: -
- Over the last 5 years accident or illness has caused 28 % of people to have been off work for accident or illness has caused 9 % of people to have been off work for more than 3 months.
- Between the ages of 25 and 34, one in three people have experienced unemployment for more than a month.
- 500 people become unemployed each day in the UK. 45% of unemployed women and 60% of unemployed men will be out of work for 6 months or more.
- Around 80 houses are repossessed each day. Most of these are due to unemployment.
Frequently Asked Questions related to the above topic.
Click below if you wish to read them: -
- What is Short Term Income Protection Insurance? (Also known as Accident Sickness and Unemployment Insurance)
- Why should you have Short Term Income Protection Insurance?
- How much will it cost?
- Will Short Term Income Protection Insurance pay out immediately you make a claim?
- Are there any situations that would result in your claim being refused?
- You want a lump sum if you were to die or become very seriously ill and could not work again. What sort of insurance do you need?
- You want to ensure that your monthly mortgage repayment is paid, if you became sick, unemployed or had an accident. What sort of insurance do you need?
- How long should you insure for?
- How much should you insure for ?
- For how long will the policy continue to provide income?
- Will a claim under a Short Term Income Protection policy affect any State benefits to which you may be entitled?
- You want to ensure that you receive a monthly income if you became sick, unemployed or had an accident for as long as you were off work (i.e. no limit of 12 months) or until the insurance policy finished whichever came sooner.Will a claim under a Short Term Income Protection policy affect any State benefits to which you may be entitled?
- What happens if I am made redundant?
- Should you insure for accident sickness and unemployment ?