A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Income Protection Insurance Jargon Buster
I
INCREASING YOUR BENEFIT AMOUNT once the policy has started
Your existing policy and Direct Debit can be adjusted but, if relevant, the 90 day Unemployment Exclusion period would apply to the increased benefit only. However if you have moved into a higher age bracket since you took out the original policy a further Direct Debit would be required for the increased benefit only with the new monthly premium corresponding to your new age bracket.
To know if you have changed age bands please contact us on 020 8972 9557
INCOME how to calculate your net monthly
If your income varies (e.g. due to fluctuations in your overtime, commission
and/or bonus payments) then you would calculate an “average”
of your monthly net income i.e. your income after tax and National Insurance.
If you are self employed this will mean calculating
your net monthly income from an average of your annual income as declared
on your self-assessment return for the previous tax year and confirmed
by the Inland Revenue.
INCAPACITY
A condition which stops you from doing your normal work or
any other similar work. It must also stop you from doing any other work
for which your experience, training and qualifications would allow you
to do. If you are self employed then the condition must prevent you
from carrying out any part of the running of your business.
INCIDENT DATE
The date you become incapacitated or unemployed
INCOME PROTECTION INSURANCE
Covers a percentage of your income and is paid directly to you and you
choose how to spend it. It can provide for any monthly repayment
such as loan, mortgage, rent, credit cards, school fees, food, gas and
electricity and removes the need for separate cover (although you can
just cover mortgage or loan repayments if you wish). It requires just
one policy for your whole working life.
INVOLUNTARY REDUNDANCY – how this affects
your payments
You are not eligible to apply for unemployment benefit for any period
for which you are in receipt of payment in lieu of notice and this includes
any compensation payment made for loss of office, including, but not
limited to any payments made as compensation under a compromise agreement
or redundancy package.
For example, If you are in receipt of a redundancy
package equivalent to 3 months salary you are not eligible to apply
for unemployment benefit for 3 months.
INCAPACITY
A condition that stops you from doing your work or any similar job.
It must also stop you from doing any other work which your experience,
education or training reasonably qualifies you to do. In addition,
if you are self-employed, an incapacity must stop you from helping,
managing, receiving any money from or carrying out any part of the day
to day running of a business.
(See Statutory Sick Pay)
IRELAND – Republic and Northern
If you are resident in Northern Ireland but work in the Republic of
Ireland you would not be eligible to apply for accident, sickness or
unemployment under this policy.