Protecting Your Income
If you were off work as a result of an accident or illness it is essential to consider what might happen financially.
Irrespective of the stage of your career, a long term illness or loss of earnings can have a serious affect on your financial wellbeing.
Income Protection also known as Permanent Health Insurance (PHI) provides you with a long term regular tax-free income if you become ill or disabled and unable to carry out your usual occupation following a serious accident or prolonged illness.
Benefits are paid tax-free for as long as you are certified as being unable to carry out your SPECIFIC occupation. This could be until you recover and start work again or up to the age you have chosen from the options available, normally to match your planned retirement or upon death if earlier.
Income protection is designed to replace salary, so insurers take into consideration any income you would continue to receive from work and offer a choice of deferred periods,(the time before they would pay benefit). The maximum you can insure for is approximately 65% of gross income and any other income that you may receive. The benefits under the plan will not replace the career earnings that you would receive if you were working, but could provide you with enough to pay your bills and maintain a reasonable standard of living whilst incapacitated.
In the event of a long term illness you need an income protection plan specific to your occupation and one which knits in with the sick pay benefits you receive from your employer. Due to the sliding scale of entitlement of doctor’s sick pay, a short fixed deferred period is not appropriate during your first five years
There is never a right time to fall seriously ill, or become involved in an accident. You could be struck down with something tomorrow, something that would stop you from ever going to work again. You won't get much from the State, certainly not enough to keep you in the style to which you're accustomed. That cash you're perhaps saved up would dwindle away fairly quickly if something really bad happened.
I’m not trying to scaremonger here. Many people get through their whole working life without any serious illness or injury and even some long-term sufferers find that they're not too badly off financially. But for those that get caught on the wrong side of the fence, the combination of ill health and financial strife can be hard to cope with.
It is never planned, but can happen to any of us. When long-term illness brings one to a halt, it can often bring our income to a halt also. Continuing to be able to settle one's routine bills, mortgage, electricity, gas, water, fuel and food, can become increasingly difficult as time goes on. The State safety net of statutory sick pay and the facilities of most employers are now largely emergency only and only help part of the problem.
Applying For Cover
We offer the opportunity for you to have a face to face meeting or we can call you at your convenience to discuss your needs and will guide you through the many plans available to ensure that you obtain the correct contract for your needs.