| There
are two main variants of Income Protection Insurance: Permanent
Health Insurance and Short Term Income Protection.
All Income Protection Insurance pays you a tax-free income
if you are off work due to sickness or accident. Short term
Income Protection normally offers you the additional option
of covering yourself for unemployment. Unemployment cover
is not covered under Permanent Health Insurance.
Short Term Income Protection Insurance provides you with
income for a maximum period of time, typically 12 months,
whereas Permanent Health Insurance can continue paying you
without interruption until the expiry of your policy no matter
how long that may be.
All Income Protection policies require you to have been off
work for a stated number of days before you can start claiming.
This is known as the “qualifying period”. It is
usually 28 days or a month for Short Term Income Protection
Insurance. Some Short Term Income Protection policies will
start paying income straight after the qualifying period but
more generous policies will back-date payments to the first
date you were off work.
Once you have started to claim under Short Term Income Protection
Insurance, the insurance company will continue to pay the
monthly income until you are either back at work, or have
been off for a set maximum number of months (typically 12
months), whichever arrives soonest.
With Short term Income Protection you are likely to be offered
the option of insuring yourself for just unemployment or alternatively
sickness and accident. As long as you can afford it, we advise
you to insure yourself for all three eventualities.
With Permanent Health Insurance you choose
a qualifying period from options of between 1 month and a
year. You simply decide which would be most suitable for you.
For example, if your employer pays your salary for up to 3
months of absence, you would not want your Permanent Health
Insurance to start paying out until your salary had ceased.
This qualifying period is also important because your premiums
reduce quite significantly as you increase the chosen length
of the qualifying period.
Our product providers for Short Term Income Protection are Burgesses Ltd who are leaders in thei field. Permanent Health Insurance is more difficult to
find on the web. If you cannot find Permanent Health Insurance
on a site, try phoning their help desk.
Request an Income Protection Quote
Request an Life Insurance Quote
|
