Income protection insurance
Income Protection in Thanet, Kent
What is Income Protection?
Also known as permanent health insurance, it will pay a regular income if you can’t work because of an illness or accident. The payments will continue until you return to work or retire.
The amount you can insure is subject to a cap, typically two-thirds of your current pre-tax salary. This is because you may be eligible for some state benefits and the amount you receive from the policy will be tax-free. You can benefit from a fixed amount or opt to increase it by the rate of inflation.
There is a deferred period between the date you fall ill and when you start to receive payments. This is usually a minimum of 4 weeks but you can set it according to your personal circumstances, for example, the most important consideration is usually for how long, and how much, your employer will pay you when you can no longer work.
As with all insurances, there are certain exclusions, for example, you may not be able to obtain cover for illnesses you already suffer from. Elements of your insurance could also be affected by your family medical history but Thanet Associates can advise you on all elements of your cover.
The cost of your insurance will vary depending on a number of factors, such as:
- The nature of your employment
- Your age, health and whether you’re a smoker
- Amount of benefit required
- Length of the deferred period
The insurance policy will end if premiums are not paid on the policy.