Term Income Protection
aka Permanent Health Insurance
NOT Private Medical Insurance)
Term Income Protection is a type of insurance policy that pays you a percentage
of your income if you become unable to work due to ill health.
The policy would usually make the payout last until you were due to retire - when
your pension should kick in.
payout is usually made regardless of the causes of the ill health.
you need it?
you became too ill to work how would your standard of living be affected? What
would happen to your mortgage payments?
the state. That's for sure. State disability benefits are about £60 a week.
normally get 50% to 60% of your income from a Long Term Income Protection / Permenant
Health policy. (This should be inflation proof.
employer might have you covered but you'd need to check exactly what it is.
of how highly you're thought of, it's very unusual to be paid for more than 6
months after someone's stopped working because of ill health.
exact definition of what your being unable to work means used
by the insurer.
Look out for the phrase "own occupation".
This means the insurer can't claim that you may have been a pilot but, now that
you can't do that , you could work from home licking envelopes for some dodgy
company, so they won't pay up...
If you see "own OR ANY
occupation" be careful. Any occupation
means you'll have to lick the envelopes...
policies that can increase the payments as you get older, for example when
the insurer starts thinking you may be more likely to make a claim...
trust them if they say "we would never, ever do that"... You can guarantee
that they will if it saves them 50p.
of insurance brokers out there waiting to give you a quote for Permanent Health
/ Income Protection.
The problem is they vary greatly in price and quality.
The best thing is to have one recommended by word of mouth.
you can't find one that way, we've had a careful look around and have identified
the ones we believe offer the best value.
to the best quote