It demonstrates if there would be a gap between their current income and their potential income if they had to rely on state benefits alone, to help evaluate if income protection cover would provide a useful safety net.
Potential income protection purchasers simply need to provide details of earnings, savings and a few other household questions, then the responses are used to model what income they would receive in the months after becoming unable to work.
NowSure Director, Rob Isaacs, says he hopes the tool will help clear up any confusion over whether additional income protection insurance can provide real support over and above state benefits which may or may not be available when off work by clarifying their entitlements.
He explains: "There is a misguided belief that the state will look after people should they be unable to work. Many also worry that taking out insurance will limit their means-tested benefit entitlement. We want to enable customers to check for themselves if an income protection plan is right for them. In many cases it can be a real financial lifeline."
It’s important to know that entitlement to state benefits varies widely depending on personal circumstances and that the state aims to provide a basic level of protection, not to protect the lifestyle the person enjoyed while they were working, so people can find themselves in real difficulty even if they qualify for benefits.
The tool was developed by Nick Kirwan, an executive committee member of the Income Protection Task Force (IPTF), an industry body set up to promote the importance of income protection insurance.
Nick says: "It was a great pleasure working with NowSure on this project to help their customers understand the true effect of taking out Income Protection and how it works alongside means-tested state welfare benefits. The calculator allows people to get the answer to the most important question of all when they’re considering the need for income protection …. How much better off might I be if I take out this product?”
Income protection insurance pays out money every month if accident, sickness or unemployment stops a policyholder from working. With NowSure’s “Protect My Dosh”, people can protect up to £1,500 or 50% of their monthly income before tax, and pays out for up to 12 months while they are unable to work.
Go to https://www.nowsure.co.uk/newsroom/income-protection-calculator/ to use the Income Protection Calculator or for further information please contact Customer services on 0800 033 4187 or email customerservices@nowsure.co.uk.
