Although the income protection policies offer extremely comprehensive cover against accidents or illness, there may be certain events all reasons for incapacity that may not be covered.
Some policies from certain providers contain standard exclusions, which invalidate claims if they are caused by a certain events, such as Criminal acts, Unreasonably not following medical advice, HIV / AIDS, war, rebellion, riot, terrorism or anything similar and Living outside stated geographical limits, which for the vast majority of insurance companies means outside of the UK. Standard exclusions vary depending on the insurance provider and some insurance companies do not have any standard exclusions at all, so the choice of insurer is very important in this regard.
Unlike standard exclusions, specific exclusions tend to be linked to the background of the person being insured rather than the insurance company. They are normally caused by a pre-existing condition of the person taking out the policy being regarded as too high a risk for the insurer to cover. One of the most common reasons for specific exclusions is pre-existing back problems leading to a spinal exclusion included in the policy. Different insurance companies take different approaches to medical background and while one insurer may place a specific exclusion on a policy, it is very possible that a different insurer may not apply the same exclusion. So, if you are considering an income protection policy and you have a medical background that may cause an exclusion, it is imperative that you speak to an adviser that can carry out thorough research and potentially find you a policy without any exclusions.
There is often confusion regarding unemployment cover and Income Protection, often caused by Accident, Sickness and Unemployment polices being branded as short term Income Protection policies and blurring the distinction between the two types of cover. Our viewpoint is that if you also need to have unemployment cover as well as illness cover then you should take out a standalone unemployment policy to run alongside an income protection policy.
The fact is that if you are unemployed, you are physically able to find and do a job, even if it is not your preferred choice and it is likely that you will be unemployed for a relatively limited period. If you are physically unable to work then you cannot earn an income, regardless of how much you want to and it could easily stay that way for a prolonged period, as shown by claims statistics. This is the major reason why we believe illness cover should be addressed before unemployment cover.