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Income protection insurance, also referred to as permanent health insurance, is designed to provide you with a regular tax free monthly income, when your normal income has been lost due to your illness or disability. |
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Income protection insurance, also referred to as permanent health insurance, is designed to provide you with a regular tax free monthly income, when your normal income has been lost due to your illness or disability. It is often confused with Accident, sickness and redundancy cover (ASU) which is only short term cover, usually 12 or 24 months. |
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| Income protection cover is designed to replace your income over the long term. You choose the end date, which should compliment your selected retirement age, normally between age 50 and 70. |
| Income protection is set up to insure a percentage of your annual income. Normally this is 50% to 65% of your employment income. |
| You also choose the waiting period (deferred period), which is the amount of time you wait before the benefit will be paid. This should normally match any sick pay that you may receive from your employer, and any savings that you may have that can support you in the initial months of illness. Self employed applicants would generally want a short deferred period. You can choose between normally 4, 8, 13, 26 and 52 weeks. The longer the deferred period, the lower the premium will generally work out to be. Certain occupations however will not be eligible for short deferred period. |
| The premiums are calculated on your age, health, occupation and smoker status. |
| It is recommended that you have the benefit amount index linked to keep pace with inflation. This means that the benefit level of income will increase each year on the anniversary of the plan either by a fixed percentage or by the retail prices index. Monthly premiums will also increase each year by the index option that you have chosen if you choose indexation option. |
| We specialise in providing you with market leading protection by working with the UK’s leading income protection providers. Employing our expertise in income protection we carefully review the market to bring you the highest level of cover with affordable premiums. |
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