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AisaDirect Ltd, an Independent Financial Adviser authorised and regulated by the Financial Services Authority in the UK only.
1/2 Fordbrook Business Centre, PEWSEY, Wiltshire, SN9 5NU Registered in England: 3621676
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This website contains information which may or may not be applicableto your own situation and circumstances.
Any information or advice on this site does not constitute a personal recommendation. If you have any doubts as to whether a product or service is suitable for you, please seek independent advice.
INCOME PROTECTION
Income Protection (also known as Permanent Health Insurance (PHI)) pays an income to the policy holder when they cannot work due to illness or injury. Unlike Critical Illness polices they do not pay out a lump sum.
The income starts at the end of a pre requested illness waiting period which should be designed to start after any other insurances (like Sickness & accident or your company payments) cease, typically from 4 to 52 weeks.
The premiums tend to be lower the longer the waiting periods, which can also be staggered, to allow you to continue to receive work pay or, indeed, savings that you feel you could live on. The policies are GUARANTEED, unlike Accident Sickness Insurance policies, and will continue to pay until you return to work or reach your selected retirement age which is normally also the State pension age, but not necessarily.
Due to the fact they can only cover net pay (as against gross pay) and they are not taxable there are maximum cover restrictions; the maximum cover you can take out is 75% of your salary, less any State benefits to which you may be entitled. This normally reduces the cover to 50% or 60% of your salary.
Income Protection Insurance cannot be cancelled by the insurance company (although it can be cancelled by you). This gives you peace of mind to know that once cover is in place, it can only be cancelled by you. The premiums for Income Protection Insurance are set with reference to a number of different criteria, including occupation, and by selecting differing criteria it is possible for you to reduce your premiums