Income Protection Plan for Smokers – Does It Affect Your Income?
How does smoking affect income protection?
Depending on your situation and how your chosen provider views smoking, smoking may affect your income protection. If you smoke, it’s even more important to compare multiple estimates because each provider will have a different definition of what constitutes a regular smoker and how dangerous they view smoking. Generally speaking, you will pay more for your policy the longer, and more regularly you have smoked.
Some providers may even add exclusions to your insurance for heavy smokers’ common illnesses caused by smoking. You won’t be able to claim due to a limitation.
What type of income protection is best for smokers?
The policy that helps you to fulfil your most important financial commitments at the most reasonable cost will be the most suitable income protection for smokers. There are some important policy terms you should be familiar with to choose the income that sufficiently fulfils your requirements:
#1 – Benefit Amount:
Providers frequently offer to pay 50% to 70% of your regular income to you in monthly (tax-free) installments.
#2 – Definition Of Incapacity:
Most policies have an “own occupation definition of incapacity” that enables you to claim if you cannot do your particular work.
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#3 – Policy Length:
You can customise the length of your insurance to fit your needs, but most insurers require that your coverage expires by a particular age. Following the provider, this age falls between 60 and 70.
#4 – Payment Period:
Payment periods might be short-term (no more than one to two years) or long-term (last up until retirement). Throughout your policy, it may receive a variety of payments.
#5 – Deferred Period:
Your payments won’t start until you can no longer work at the conclusion of your deferred term. Deferral periods frequently used are 4, 8, 13, 26 and 52 weeks.
#6 – Premium Type:
Premiums might be fixed (stay the same), under review (change based on specified criteria), or based on an employee — (increase as you get older). If your smoking habits change over time, age-banded premiums may not punish you for it.
Are you thinking of buying personal protection? If you are, contact Mountview Financial Solutions for the correct guidance to make your process smooth.
Things smokers should consider before applying for smoker income protection?
The cost of your income protection as a smoker will vary depending on many variables. It includes information about you like:
- Health and wellbeing
- Smoking status
Also, with information about your policy, like:
- Policy length
- Payment period (long-term or short-term)
- Deferred period
- Definition of incapacity
- Premium type
You will inquire if you admit to smoking so medical professionals can learn more about your smoking habits. Your premiums will likely rise (compared to a nonsmoker) so that insurers can lessen the risk of providing you with coverage.
The cost of income protection will be greater for smokers than for nonsmokers. It is done to make up for the increased risks. However, not all providers would punish smoking with higher premiums regarding age-banded charges. This premium will automatically grow each year as you age, potentially increasing your overall costs. For complete insurance advice, contact Mountview Financial Solutions in Purfleet, UK.