Income Protection
Insurance or Permanent Health Insurance
is designed to provide you with an
income in the event of you suffering an
illness or accident that stops you
working and therefore 'earning a
living'. The income requested
should be sufficient to cover all of
your normal day to day needs however
cannot normally be above 66% of your
current income. It is unlikely to
be sufficient to cover
private medical treatment
for anything other
than trivial ailments.
Permanent Health
Insurance (PHI) provides you with an
income it does not pay out a lump sum.
You can get insurance that will pay out
a lump sum for
critical illness
or total
disability caused by illness.
Permanent Health Insurance - how it
works
In the event of
you making a claim your chosen level of
income will commence at the end of the
selected deferral period and will then
continue until you are able to return to
work, you die or the plan expires at the
age you selected at outset. The
policy does not pay out on or after the
death of the insured. If you
require a lump sum payout on death or an
income for the family after death you
need
life insurance.
The income is initially paid to the
insured tax free and stays this way for
a considerable period of time.
Please refer to the key features
document for full details.
Premiums can be paid monthly or annually
by direct debit from your bank account.
Why buy Permanent Health insurance?
When someone becomes ill and is unable
to work the requirement for money
is just as demanding and if anything can
become greater. You will still
have all of your normal day to day
overheads like paying the mortgage,
feeding and clothing the family, light,
heat, telephone and more.
By having a replacement income available
to you in these circumstances you are
able to choose what is right for you and
not be forced into unhappy situations.
You will be able to maintain your
lifestyle and not have to worry about
your or your family's future.
How much Permanent Health Insurance
cover should I have?
Determining levels of cover is not as
easy as it might be because it is always
necessary to balance what you would like
with what you can afford. You will
need to list everything that you spend
your money on each month. Do not
forget to include an average for bills
that are paid out quarterly like
telephone, gas, electricity and annual
items like rates, house insurance, etc.
Hopefully you will be able to afford
everything you want but if you cannot,
remember that it is better to have what
you can afford than trying to go without
most.
How much does Permanent Health Insurance
cost?
The premium will
depend on a number of factors, including
how much cover you need and the term of
the policy, your age, sex and your
health. Get an
instant quote now
and get an idea of
your premium, you will probably be
surprised how little it costs.
The premium will be higher the older the
age the policy runs to as there is a
greater risk of you claiming. You
can keep the premium down by having a
longer 'deferral period'.
When selecting your PHI income
protection policy you will have a choice
of deferral periods. A deferral
period is the time that you are off work
before the income becomes payable. The
usual periods are 4, 13, 26 and 52
weeks. The longer the deferral
period chosen the lower the premium for
the policy. When deciding which deferral
period is most suitable and the amount
of income you will require do not forget
to take into consideration any benefits
that are payable to you by your employer
and the state.
Why buy through Moneyworld?
A very simple answer! You get the
same high quality product from the UK's
leading Insurance Companies for a lower
premium than any other supplier without
paying any arrangement fees.
Please discover this for yourself, get
as many quotes as you like then return
to us and save yourself some money.
