Braunton Independent Financial Advisers

Income Protection

An income protection insurance policy, previously known as permanent health insurance, is an income replacement policy, and comes into operation when income is lost as a result of long term illness or disability
Income is paid to the policyholder at the end of an initial waiting period, sometimes called a deferred period or an elimination period (usually 4,13,26 or 52 weeks)
Benefit is payable until the earlier of expiry of the policy term (usually age 60 or 65), the policyholder's return to work, or death
Polices can be established to provide income after other benefits such as from an employer cease
Benefits are limited so that the total benefits from all sources do not exceed a specified amount. Typically this is an amount between 50% and 75% of pre incapacity earnings. State incapacity benefits and sick pay from employers are included in the calculation and some insurers will include all sources of income. The insurer will also take into account cover under other similar policies such as that provided by employers
Typical uses include; provision for long term income to protect a mortgage or provide other income. A variation is also available for employers looking to provide benefits to employees or provide for the costs of replacing a Key Individual (contact us direct for quotes on this basis)