Income Protection plans are otherwise known as Permanent Health Insurance (PHI) schemes. PHI is designed to replace your income when you are unable to work through illness or disability.
Such policies can replace up to 75% of your salary, and are based on a set deferred period which determines when the benefit will start being paid. The deferred period is set at the time when your employer ceases to pay your income through illness, and is generally anything from 4 weeks to 6 months.
The policy will expire on either the termination of your disability/illness, your death, or the Plan expiry date of your choice which is usually the date you intend to retire.
Permanent Health Insurance plans come in a variety of different packages. It can provide you with an income that remains the same throughout the term of your illness or disability, or you have the option to incorporate annual increases in the level of income you are entitled to, which will obviously protect your income from increases in inflation over time.
For more information and assistance, please contact us