- Permanent Health Insurance protects your income long term.
- Permanent Health Insurance is protection against disability.
- Permanent Health Insurance provides financial help when you need it most.
- Permanent Health Insurance helps you get back to work.
- Permanent Health Insurance - cover against the unforeseeable; accidents, ill health and long term disability.
Permanent Health Insurance is also known as income replacement insurance, income protection or long-term disability insurance.
It's designed to pay out a regular monthly tax free income if you're unable to work.
Why is it called permanent health insurance?
Because the insurer can't cancel the policy, no matter how many times you make a claim. The policy will continue to pay out until you return to work, die or the policy ends, whichever happens first.
Most people have life insurance to cover themselves against death but far fewer people protect themselves against loss of income. Statistics show in the UK there are more than 1.2 million people who have been unable to work for more than a year due to medical issues.
If you're unable to work then you can claim state benefits; statutory sick pay, incapacity benefit and possibly income support but this is often very low. That's why industry experts suggest you consider Permanent Health Insurance.
With a permanent health insurance policy you can replace the income lost through accident, sickness or injury. The maximum benefit is usually between 50-60 percent of your gross income. As it’s paid tax free and you can still claim any state benefits, it’s a good deal. You can also opt for the benefit to go up each year with inflation, so that the value of your benefit is not eroded.
A number of factors can influence the premium you pay. These include:
- Your occupation – Some jobs are riskier than others, so the insurer needs to know yours before they price the risk
- Waiting period – This cover is long term, not "flu-cover", so there is a waiting period before a payout starts, so as to keep premiums lower. 1 month or 3 months are the most popular.
- Payment period – You can set cover to your retirement or over any other period, even 1 or 2 years. The shorter the term the cheaper the cover.
- Health – if you have existing health issues, or a family history that makes them likely, then the insurer may increase your premiums.
We are experts at avoiding this properly.
If you're considering a permanent health insurance this type of policy we suggest you get proper advice as there are many insurers and important differences between their policies.
A LifeSearch adviser can help you find the right policy to suit your job and budget.
Remember it's far more likely you'll be unable to work than die in the next 20 years so why not protect your income with a permanent health insurance policy today?