Income Protection Insurance Summary
If you are self-employed, you won't have this option. If you are an employee and you fall ill, your employer might pay you your full pay for a few weeks or months. By law, an employer currently must pay most employees statutory sick pay for up to 28 weeks, though this will probably be a lot less than your full earnings. After that, you would probably have to rely on state benefits
- Designed to pay out an Income (not lump sum) on accident or sickness
- Usually has a waiting or deferred period from 4/8/13/26/52 weeks
- PHI Benefits are currently paid out tax free on claim until you return to work or plan end date
- Income Insurance Benefits may be level or inflation linked
- Medical evidence may be required and a medical examination for those with health issues
- Premiums may be guaranteed or reviewable
- Cover may be based on maximum of, say 50% to 65% of your before-tax earnings
- If self employed terms usually based on annual net profits
- Waiver of Premium (where the Insurer waives/protects & covers your premiums after a deferred period of 4/8/13/26 weeks due to sickness or accident)