What is Income Protection?
Do I Need Military Income Protection?
It's no secret that many of the roles within the military are not for the faint-hearted. Not only do you need to be fighting fit to do your role, but you need to be able to do this without distraction. Not wanting to be too dramatic here, but the last thing you want to be worrying about when you're about to hurl yourself into a potentially dangerous situation is whether it is going to impact your family back home.
You need to be 100% on the job and you can’t do that if you don’t know your loved ones are covered. This is where we come in.
It’s A Risky Business...
The Armed Forces and military by default bring their own challenges. You’re often exposed to situations that would make most of the population run for cover, and being ex-military ourselves we totally understand that.
There’s a reason we specialise in financial products tailored perfectly to the military. It’s because, and no pun intended here, financial products are a minefield of their own and that’s before you even mention any military aspects.
All you want to know is that you’re covered should anything limit your ability to work - simple eh?
Simple if you know the industry well and what to look out for.
Simple if you’re happy to risk paying extra money to some random broker.
Simple if you love reading pages and pages of legal jargon.
Not so simple if you’re a regular guy with better things to do than get magnifying glasses to reams of paperwork.
Many people think of the needs of life assurance, that's probably one of the first protection products you go for. But let's be realistic here, many military roles expose you almost daily to situations which could limit your ability to work.
And if you’re leaving the forces, the odds are high you’re going into a role using a similar skillset so you’d still need to know you’re going to be covered if you can’t then fulfil that for any reason.
If you’re in a physical job, you almost need to insure your body and ability - income protection is exactly that.
There Is Such A Thing As Too Much Cover...
Here at Apex, we pride ourselves on knowing the benefit structure of the military inside out.
Sometimes you’ll already be perfectly covered with what you have in place and we’ll never sell you something you don’t need. If you were unable to work whilst in service, the benefits would kick in and you’d still receive an income.
Apex have access to the very best products and rates and it’s our job to make sure you’re protected properly and not paying over the odds for that same peace of mind if your circumstances are changing in any way.
Maybe you’re leaving the forces? We can help you review your financial affairs and make sure there’s no gap in the cover and protection you have in place when you start your new job.
What Is Income Protection Insurance?
You're probably not new to the world of income protection. Income Protection Insurance is simply a policy, which would payout in the event of you not being able to work - maybe after a serious illness or an injury. They are also called Permanent Health Insurance or Income Replacement Insurance just to confuse us all further!
Their basis is the same as any other insurance policy though - you have a precious ‘thing’ and you want to protect it so you pay for someone to insure it. In this instance, that ‘thing’ just happens to be you and your ability to work.
Illness or injury can be an emotional time which can take some adjusting to - it will help hugely if you know that during this time, you don’t have to worry about money too.
You want to know that in the event of anything happening to stop you from working, your financial commitments such as mortgage and bills, maybe your children's education will still be paid for should you be unable to work.
What Types Of Income Protection Insurance Are There?
In short, there are two main types of income protection insurance. Depending on your situation, you may need your income replacing for a long time ie until retirement or death, or you may need something to cover you for a shorter period during an income break.
Long Term Income Protection
This type of policy is designed to pay out until you reach either a fixed age, death or are able to return to work. With these types of policies, you choose what you are going to be covered for when you apply for the policy. You will know exactly what you are covered for from the outset, what you will get paid and will also know anything that you're not insured for such as existing medical conditions.
Short Term Income Protection.
This is similar in structure to the long term income protection in that you receive payments to replace your lost income, but short term income protection is taken out when you actually need the cover. Short Term Income Protection has a different payout basis too. With these types of policy, sometimes known as STIP’s, you will have a fixed payout period which is often between one to five years until your circumstances enable you to return to work.
Both policies have their benefits and drawbacks so it's important that you choose the right policy for you. For instance, short term income protection policies are cheaper as they are less expensive due to having a shorter payout period, but there are more restrictions on this type of policy.
Why Do I Need Military Income Protection Insurance?
Before we go any further - can we just say - we are actually a pretty upbeat team here. We’re not all doom and gloom like we’re sounding here - but there's a big difference between looking at what your needs are realistically, and trying to ‘pitch a product’.
We're not here to sell things to people that don't need them. We are here in the same way that your occupation protects our country.
We like to think of ourselves as defending you and your family. We’ve been where you are, and know what you’re up against.
You will relax far more if you know that your financial needs are covered in the event of an accident or something which affects your ability to work.
This could be the difference between your family surviving it far more easily than it being an unnecessary struggle. In other occupations, this is a lower risk but because of the natural risk involved in your role, many insurance brokers will not offer income protection insurance to the military.
So with that in mind, this isn’t a job for that random broker we mentioned before.
The nature of your occupation, or ex-occupation if you’re leaving it, means that it may ‘look like’ you can obtain income protection from non-specialised brokers. Quite often though, there will be a weighting or additional premium payable for the heightened risk you pose to the insurance company.
With any type of financial product, particularly those based on insuring people or health, there is a lot of detailed information needed. You will want to know fully that this has all been explored and understood. You then want to be helped to understand the intricacies of that policy yourself.
We pledge to you that we will always be transparent about your policy.
We do this day in, day out, so know exactly which products are perfect for you. You won’t risk paying for hidden military clauses or occupational ratings which hadn’t been noticed. You’ll know exactly what you’re covered for, exactly what you’re paying for and exactly who you’re dealing with.
You want to know that you covered and so do your loved ones.
Your lifestyle can be stressful to your partners and family. They not only want to know that you’re okay, but they also need to know that they are too. The last thing they want to be doing is badgering you on what happens if the unthinkable ever happens. It's important to us that you know we have your back.
There are many situations you risk life and limb for and you can't afford to be distracted in any way - by us doing our job properly, it lets you do yours.
Get in touch with our team for a no-obligation chat on what cover you and your family could benefit from...