A guide to Income Protection with PG Mutual

Posted by / August 16, 2022

Nobody likes to dwell on the unexpected. But have you ever considered how you would pay your bills if illness or injury prevented you from working? Income protection cover could provide the peace of mind that you will be able to meet your financial commitments until you are well enough to return to work. And unlike many other providers, we share our profits with our policyholders.  

Here’s some information about income protection cover with PG Mutual that could be useful.


What is income protection? 

Rent or mortgage payments. Utility bills. Your mobile phone contract. Monthly overheads can add up fast. If illness or injury left you unable to work, you would have to rely on your savings to make your payments on time – or risk falling into financial difficulties.

Income protection cover provides an alternative. It can pay out an income straight into your bank account while you are sick or injured and unable to work – so you can concentrate on getting better without worrying about your finances.

PG Mutual is a specialist when it comes to income protection. In fact, we have been providing peace of mind to policyholders since 1928. And one thing that makes us different is we share our profits with our members, providing a lump sum payment when each policy matures. More on that later.

Getting a quote 

You can get a quote online or over the phone. You will be asked a few questions about your job and the type of cover you would like. One of the key areas to consider is your deferment period. This refers to the time between you becoming unable to work and your payments beginning – the longer you are prepared to wait for claim payments, the cheaper the policy. What’s more, Income Protection Plus is tailorable to your situation. So, we are able to begin your payments within one day of you becoming injured or unwell. But for some people, it makes sense to use any company-provided sick pay or NHS sick pay before starting to draw from an income protection policy.

Another thing to consider is the tier of cover you would like. With our Premium cover, you receive 100% of the income you are insured for throughout the entire duration of your inability to work. Meanwhile, with our Standard cover, you receive 100% of your income benefit for two years, before the level drops to 50% in the third year and 30% from year four. If you have any questions about the features of our product, please contact us and a member of our team will be happy to assist you.

Medical questionnaire

To ensure our policies provide the best value for all of our members, we ask each new applicant to complete one of the following; a telephone interview with one of our experienced nurses, fill in an online questionnaire, or, if you’re going for a standard policy – to exclude all pre-existing conditions and forego medical underwriting. It usually takes no longer than 30 minutes or so – and you will be asked a series of questions about your health, lifestyle, and your immediate family’s medical history. Of course, the information you provide will be treated in the strictest confidence and only used in the assessment of your application or any claim you make.

How much does a policy cost?  

The cost of your policy all depends on your personal circumstances and the level of cover you are looking for. One thing that’s certain is that your premium will never be affected by any claims that you make. You can pay for your policy monthly or annual direct debit.

What happens if you change your mind?  

After your application is accepted, you have thirty days to cancel your policy and get a full refund on any money you have paid so far – no questions asked – unless you have already made a claim.

Build a nest egg with our profit share scheme

All PG Mutual policyholders get automatic access to our profit share scheme. We reinvest our profits into a mix of equities, government gilts, corporate bonds, property, and cash. It’s a balanced investment strategy designed to provide long-term growth. The aim is to provide you with a lump sum payment at the maturity of your policy – whether you have claimed against your policy or not.

Provided that you have paid for your cover from taxed income, the lump sum is normally free of income and capital gains tax under current legislation. In certain circumstances, we may allow policyholders to withdraw up to £500 from their profit share balance, without charge, before the end of their policy. These purposes include the need for medical treatment, the death of a close relative, or financial distress.

You can find out more about our profit share here.

How long does the policy last?

Our cover is designed to last you until your 65th birthday. If you terminate the policy early, your accumulated lump sum from the profit share scheme may be subject to a deduction of the two previous years of bonuses. Once you have retired, you can choose to continue to be part of the profit share scheme by becoming an Associate Member.

Making a claim

If illness or injury prevents you from working, making a claim against your policy is quick and easy – and can be done online or over the phone. Our experienced and friendly in-house claims team handles our claims, and we are here to support you. In fact, between 2017 and 2021, we paid out on 93% of income protection claims.

Providing you have paid for your policy via taxed income, your payments will likely be free from income and capital gains tax liabilities. Payments will be made weekly until you are well enough to work again or reach 65, whichever comes sooner.

The additional benefits of being a member    

Being a PG Mutual member currently gives you access to a lot of additional benefits.

GP24: Get free access to the GP24 service and connect to a GP via your smartphone, laptop, or tablet. It puts healthcare in the palm of your hand.

Wellbeing services: We provide free access to a counselling service where you can discuss challenges you face in your personal or professional life.

Health Assessment: A free health assessment by a medical professional after 6 months of membership.

Refer a friend

Good things are worth sharing. When you refer a friend, colleague, or family member to PG Mutual, we will give you both £50 of high street shopping vouchers if they take out cover.

They will also receive 25% off their first year of cover – and you will be entered into a prize draw to win £750 of holiday vouchers. But, for more information, please look at our Terms and Conditions.

Ready to get covered?

You can start your quote right here. Or, if you have any questions about income protection with PG Mutual, talk to our friendly customer service team on 0800 146 307.

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