St Chads ChurchMany people come to AFP Shrewsbury and ask “What is income protection insurance and should I have a policy?” Like any insurance, it is put in place to protect you.  If you’re unable to work because of illness or injury, income protection insurance will provide you with a regular tax-free monthly income. The maximum amount of income you can replace through insurance is usually the after-tax earnings you have lost, less an adjustment for state benefits you can claim.  As with all insurance, it is important that you have the right type of policy which provides all that you need it to do for you.

Income Protection Policies

Long-term income repayment policies usually come into play between the time when your employer stops paying sick pay, and when you collect your pension.

Shorter-term policies tend to be used to protect a mortgage, bank loan or other payment.  These usually commence within a few weeks, but stop entirely after 12 months or 24 months.  Short-term policies often include unemployment and redundancy, unlike longer-term income protection cover.

To clarify, income protection insurance only applies to products, which pay you an income if you become unable to work due to sickness or injury.  Policies to protect mortgages, loans or credit card debts are often called Accident Sickness Unemployment (ASU) policies.

We will happily explain this in more detail to you.

AFP Shrewsbury is a trading style of Gary Harper (FRN 755477) who is an Appointed Representative of AFP Partnership (FRN 300003). AFP Partnership are authorised and regulated by the Financial Conduct Authority. Certain products, including Buy to Let and Commercial mortgages, are not regulated by the Financial Conduct Authority. If you would like to know more about what income protection insurance is and how it can benefit you, call now for a no obligation chat on 01743 364377 or e-mail

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