Income protection should cover pension contributions, adviser says

Often covers just monthly outgoings

clock • 3 min read

Providers of income protection should allow additional cover for pension contributions, similar to the group income protection and executive income protection, adviser firm Drewberry has said.

The majority of mainstream income protection insurers only cover 50% to 60% of gross annual income, the adviser firm highlighted.  Drewberry warned this amount is often just enough to cover a client's essential monthly outgoings but generally does not leave enough room to cover the pension contributions a client would need to make during incapacity to survive financially during retirement. Drewberry suggests that insurers provide an option to cover a specified pension contribution when setting up new income protection plans, in addition to the usual 50% to 60% for lifestyle protection...

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