Details of our Income Protection

Need to give a client a simple answer to a complicated question? You’ll find everything you need to know here. 

We'll pay out Income Protection claims if your clients are unable to work due to sickness, accident or disability and meet our definition of incapacitated.Once the deferred period has finished, they'll get a regular income every month.

If your clients meet our definition of terminal illness, they won't need to wait for the deferred period to end before we start making payments.

  • Basis - single life
  • Premiums - guaranteed
  • Choice of cover payments - monthly income for 1 year, 2 years or until the cover ends
  • Amount of cover - level or increasing
  • Deferred period before payouts begin - 4, 8, 13, 26 or 52 weeks
  • Term – minimum 5 years, maximum 52 years
  • Age when cover starts – minimum 18 attained, maximum 59 attained 
  • Maximum age when cover ends - 70 years
  • Amount - up to 65% of the first £15,000 of your clients' pre-incapacity earnings, plus 55% of the remainder. See our plan details
  • Maximum we’ll pay each year – £250,000

To help protect against the effects of inflation, your clients can increase the amount of cover over the term of their plan in two ways:

  • Fixed rate - at a chosen rate of interest (between 2% and 5%)
  • Index-linked rate - based on the change in the retail price index (between 2% and 10%)

Your clients can increase the amount of their cover without any medical evidence if they're getting married, increasing their mortgage, becoming a parent or get a salary increase.

This increase is limited to either half of the original cover amount, or £10,000 each year - whichever is lowest.

The amount of cover paid out at claim will never be less than the lower of £1,500 each month or the amount of cover on the plan.

If at claim your client's earnings are less than the amount of cover they have on their plan, we'll pay the lower of:

  • the amount of cover on their plan subject to a minimum of £1,500 a month, or
  • the amount of cover on the plan at the time of the claim 

This provides greater protection for your client if their income drops after the cover is taken out.

We’ll continue to pay your clients a monthly income until:

  • they return to work
  • they die
  • the end of the term of the cover
  • they no longer meet the definition of incapacitated
  • the cover payment period ends

If your clients return to work after a claim and the illness (or a related one) recurs, we might be able to restart their payments again (subject to certain conditions). If the illness recurs within 52 weeks, the deferred period won’t apply and your clients can start getting payments right away if they meet our definition of incapacitated.

Additional benefits of Income Protection

We’ll pay up to £4,000 per fracture cover claim - we cover multiple fractures in the same claim, up to the £4,000 claim limit. And a client can make up to two fracture claims in a 12 month period.

  • Fracture cover is available from the day a client's Income Protection starts and there's no deferred period to wait before making a claim.
  • It doesn't affect your client's main Income Protection cover.

The payout a client receives depends on the fracture site:

Fracture site Maximum payout
Skull (open fracture)   £4,000
Skull (closed fracture)  £2,500
 Cheekbone  £1,500
 Jaw   £2,000
Collar bone  £1,000
Shoulder blade   £1,500
Sternum  £1,500
Arm   £2,500
One or more ribs  £1,000
Vertebra  £2,000
Wrist   £1,500
Hand (excluding fingers and thumbs)  £1,500
Pelvis  £2,000
Upper leg   £4,000
Knee  £4,000
Lower leg   £2,500
Ankle  £2,000
Foot (excluding toes)   £1,500

If a client is hospitalised for more than six consecutive nights during their deferred period, we’ll pay £100 per night, for up to 90 nights during the term of their cover. If we’ve started paying a claim and they’re discharged from hospital, then readmitted for the same cause, we’ll restart their payments (subject to certain conditions).

We give clients with deferred periods of 13, 26 and 52 weeks a back-to-work payment in their first and second months back at work to help meet any additional expenses.
The amount they get depends on their cover payment period:

Cover payment periodFirst month  Second month  
Whole term  50% of monthly payment  25% of monthly payment
One or two years  25% of monthly payment  10% of monthly payment

We won't pay an Income Protection claim if:

  • It’s the result of intentional self-inflicted injury. 
  • It’s the result of an exclusion shown on the cover summary. 
  • The person covered doesn't meet the definition of incapacitated in our plan details.
  • If any medical or other evidence is not supplied when we ask for it. 

Terms and conditions

For full terms and conditions see our plan details

Last updated: 13 Sep 2017

This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit royallondon.com.

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London EC3V 0RL.