Income Protection
Income can be protected in several ways and against different events.
Permanent Health Insurance (PHI) - provides cover against accident, sickness or disability for a set term and can be used to protect a mortgage over a 25 year period or up to age 65 (whichever is the sooner). Claims are paid when a policy holder is sick or injured and unable to work. A valid claim in year 1of a 25 year policy could result in a monthly income for the remaining 24 years. Multiple claims are also possible.
Accident & Sickness Insurance (AS or ASU) - usually an annual policy much like car insurance which will pay a monthly amount for between 1 and 2 years only if the policy holder is unable to return to work due to accident, sickness or unemployment. Can be purchased as just Accident & Sickness cover. Only one claim per policy.
Unemployment Cover (U) - Can be purchased as part of an ASU policy or as a stand-alone policy and will pay a monthly benefit for between 1 and 2 years or until the policyholder returns to work.