There are many frequently asked questions when it comes to income protection, here are the main ones answered.

Firstly what is income protection insurance? This is known under a number of terms, PHI, Permanent Health Insurance, Income insurance or Income Replacement and it provides a tax free income if you are unable to work due to illness or disability for as long as it takes for you to recover enough to return to work or until your retirement age, usually between 50 and 70, if you are unable to return to work.

How long will income protection insurance payout is often questioned, these policies will continue to payout until your selected retirement age no matter how young you are when you become unable to work.

It is often questioned how much income protection insurance is needed. The vast majority of insurance companies will pay a maximum of between 50 to 65% of your annual salary as a tax free sum. It is important to work out how much cover you will need before taking out a policy. To do this it is worth deciding how much money you will need per month to cover your outgoings, for example your mortgage repayments, bills and food, this will be your starting point for insurance levels. Many people insure around 50% of their income but some people only decide to cover their mortgage repayments or their rent and bills. The level of cover you choose depends entirely upon your circumstances.

Another common question is how much should an income protection policy cost? The price of these policies can vary between companies and can depend upon your circumstances. The cost of premiums are calculated on a number of things including the level of cover you require, your current  state of health as well as your occupation, your age, if you are a smoker and the length of cover you require.

If you are wanting to find out any more information on income protection insurance visit http://www.endsleigh.co.uk there is a depth of information for your perusal and friendly and welcoming staff if you have any questions.