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| Guide to Protection Insurance in the UK
What is Income Protection Insurance or Permanent Health Insurance - PHI Both income protection insurance and permanent health insurance plans provides you with a monthly benefit which replaces your regular income should you not be able to go to work because of a form of illness, or if you suffer an injury. You pay premiums, which are affected by certain criteria, and then you receive cover for the period which you are unable to work, this may take you up to retirement age, when you would normally have ceased employment and be receiving pension payments. The maximum benefit is usually between 50% - 80% of your income, you may also be entitled to receive incapacity benefit and statutory sick pay from your employer. It is in the insurers best interest that you are enticed to go back to paid employment as soon as possible, and for this reason they do not pay 100% of your earnings. However, whilst you are still paying your premiums you can make as many claims as you need to, so if you suffer from many separate illnesses you are still covered. There are different levels of cover which offer different levels of benefits and the premium are obviously affected by this.
Before taking out any insurance policies, check what cover you already have. It is also worth speaking to your employer as some companies have an insurance known as Group Income Protection Policy. This insurance covers the companies employees against loss of earnings due to accident and illness but it doesn’t cover you for redundancy.
Download the Mortgage and Income Protection PDF Guide here - see our other free PDF guides here Guide Contents main menu << previous page next page >> |
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