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