Zurich Income Protection

Why Should You Buy Zurich Income Protection Insurance?

You should buy Zurich life insurance in the UK because of the following reasons: 

• Guaranteed Minimum Benefits: Under this term insurance , the insurer guarantees the minimum monthly income benefit amount that would be payable even if your salary drops. You can choose the minimum Zurich life insurance benefit amount of up to £1500.

• Supports Rehabilitation: Zurich life insurance offers a team of nurses that help you with your recovery and the insurer may even pay for your treatment costs.

• Return to Work Package: In case you end up returning to work but are earning less than you used to, the insurer will top up some of the difference between your current and previous salary for up to 2 years.

• Waiver of Premium: If the policyholder is too injured or ill to work, this plan will waive off all the remaining premiums and continue the Zurich life insurance benefits coverage.

• Customised Coverage: You can easily customise to ensure the policy fits your specific needs and provides the required financial protection to you and your family. 

What are the Zurich Life Insurance Benefits?

Here is a list of all the Zurich life insurance benefits that you can avail of with this plan:

• Receive monthly payments that are up to 80% of your take-home payment, in case you are unable to work due to an illness or injury

• You can choose when the payments need to begin and for how long the policy should cover you

• Customisable policy details that last until the end of the policy term or Zurich life insurance benefits that last up to a maximum of 2 years

Who is Eligible to Buy Zurich Income Protection Plan?

• Anyone between the ages of 16 years and 65 years

• You can only buy the policy for yourself and no one else

• You must be either employed or self-employed and working for over 16 hours a week

• You must be a UK resident and have been registered with a UK General Practitioner for at least two years

What are some of the key features of Zurich income protection insurance?

Here are some key features of the Zurich Income Protection insurance plan:

1. Zurich Income Protection Cover

   Choosing the Right Cover:

   Select your monthly benefit and coverage duration, with flexible features to tailor to your needs. Details are explained in the following sections.

   Income Protection Start:

   Choose a 'deferred period' before payments begin after incapacitation:

   • Single Deferred Period: Options are 4, 8, 13, 26, 52, or 104 weeks.

   • Dual Deferred Period: Stagger benefits with two periods, same options as above.

   Consider any continuing income or savings during these periods.

2. Monthly Benefit Duration

   • Full Term: Benefits are paid as long as you're incapacitated until the policy ends. No limit on claims, but only one claim at a time.

   • Limited Period: Benefits are paid up to 24 months per claim, including return-to-work benefits. After 24 months, you must return to work for six months before claiming again. No limit on claims, but only one claim at a time.

3. Cover Levels

   You can choose between two cover options: Zurich Income Protection and Zurich Income Protection Select. Both come with various additional benefits, but the Select option offers a broader scope of coverage. Additionally, you have the option to add a multi-fracture cover to either Zurich Income Protection or Zurich Income Protection Select for an extra premium.

   • Level Cover: Your coverage amount stays the same unless you change it.

   • Increasing Cover: Your monthly benefit can increase annually by 3%, 5%, or with the Retail Prices Index. Premiums will also increase accordingly.

4. Minimum Benefit Guarantee

   If you're working at least 16 hours a week and your income has dropped since starting your policy, we'll pay a guaranteed minimum income of either your monthly benefit or £1,500 per month, whichever is lower. This applies even if it exceeds 80% of your previous 12-month income. For doctors and surgeons, this guarantee rises to £3,000 per month.

5. Waiver of Premium

   You won't need to pay premiums while receiving an income from us. We'll stop collecting premiums 13 weeks from the date of incapacity or at the end of your deferred period, whichever comes first. If you notify us of a valid claim during the deferred period, a claims specialist will assist you, and we’ll stop collecting premiums from the notification date.

What are Some Additional Details About Zurich Income Protection Insurance?

1. Zurich Life Insurance Payout

   When you buy a policy, you decide the cover amount, which will be shown on your 'Confirmation of terms'. Considering all your income protection policies, the maximum monthly benefit is the lower of £20,000 per month or 80% of your annual net earnings.

   The actual payout depends on your earnings before incapacitation and any other income or benefits you receive during your claim. The maximum payout, before deductions, will be the lower of your monthly benefit or 80% of your income over the previous 12 months. If your income drops between taking out the policy and claiming, the payout may be less. However, if this maximum amount is at least 90% of your monthly benefit, you'll receive an income based on your monthly benefit.

2. Zurich Life Reduced Payout

   Your payout will be reduced by any continuing income or benefits, including:

   • Salary, bonuses, sick pay, commission, or benefits in kind after tax and national insurance deductions.

   • Your share of post-tax profits (if you're a company director).

   • Continuing net profit from your business after tax and national insurance (if self-employed).

   • Other insurance and pension payments due to your incapacity.

   State benefits and income from savings and investments won't affect the payout. If the payout is less than your chosen benefit, premiums won't be refunded, so review your coverage regularly.

3. Return to Work Package

   Your monthly benefit stops if you return to work in a limited capacity or a lower-paid job. However, you may qualify for a return to work package, which pays a percentage of your previous income based on how much your earnings have decreased. If you return to the same job with reduced hours, this benefit lasts up to 24 months. To receive this package, you must still receive our income when you return to work. This benefit is only available if you were working before your incapacity.

4. Zurich Income Protection Premiums

   The cost depends on:

   • Your age, health, occupation, and smoking status.

   • The amount, type, and cover duration, plus any additional benefits.

   Your 'Confirmation of terms' will specify the exact cost.

5. Payment and Premiums

   • How to Pay: Premiums are collected by direct debit, either monthly or annually.

   • Premium Changes: Premiums are guaranteed to stay the same unless you choose to increase cover or change your cover.

   • Missed Payments: If you stop paying, your policy ends and no premiums will be refunded.

6. When will the Zurich Life Insurance Payouts Stop?

   Zurich income protection insurance will stop payouts when:

   • You no longer meet the incapacity definition, have no loss of earnings, or your income exceeds the maximum benefit.

   • Your policy ends, you’ve received the return to work benefit for 24 months, or chosen the limited benefit period and been paid for 24 months.

   • You suffer an unfortunate death.

What are Some Alternate Ways to Get Income Protection From India?

To protect your family in case of your unfortunate demise, you can buy NRI Term insurance in UK from Indian insurers. You can follow the below-mentioned steps to get income protection in India:

Step 1: Visit the Policybazaar term insurance for NRI page

Step 2: Fill in your name, gender, date of birth, and other contact details

Step 3: Select the right occupation type, annual income, educational qualifications, and smoking habits

Step 4: Choose the most suitable income protection plan and proceed to pay premiums via the preferred payment mode