Income Protection
Income can be protected in several ways and against different events.
Long term solution:
>> Permanent Health Insurance (PHI)
- Provides cover against accident, sickness & disability
- Policy is for a set term and can be used to protect a mortgage over a 25 year period or income up to retirement at age 65
- 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
- Prices can be fixed for the term
- Multiple claims are possible throughout the term of the policy
- Suitable for employed or self employed people
.
Short term solution:
>> Accident & Sickness Insurance (AS or ASU)
- Usually an annual or monthly policy (the policy keeps going as long as the payments are made)
- Pays a monthly amount for 1 year if the policy holder is unable to work due to accident, sickness or unemployment
- Can be purchased as just Accident & Sickness cover
- Multiple claims are sometimes possible but may require a return to work for 6 months before they can be accepted
- Price is subject to change each year
- Suitable for employed or self employed (if Accident & Sickness only)
- Not suitable for long term or serious illness
.
- Can be purchased as part of an ASU policy or on its own
- Will pay a monthly benefit for up to 1 year or until the policyholder returns to work
- Monthly payment subject to change each year
- Not suitable for people who already know their job is at risk
- Not suitable for self employed people
.