Income
Protection Options
 | Income Protection - Permanent Health Insurance (PHI) |
This policy is designed to provide an income in
the event the insured individual is unable to work due to ill health. The
level of premium will depend upon benefit and term selected and most
policies cease to pay the benefit once the insured is able to return to
work. Income Protection policies are usually written for the longer term,
usually to retirement age.
| Accident, Sickness & Unemployment (ASU)
|
ASU policies were traditionally sold to accompany
mortgages when they are called Mortgage Payments Protection Insurance (MPPI),
allowing for a regular income to be paid to the insured should they be
unable to work (or lose their job). Accident & Sickness (sometimes called
Disability) can be bought separately from the Unemployment cover. MPPI
policies are normally restricted in the amount of cover not only to a
percentage of normal income but strictly to the amount of mortgage being
paid with an allowance of an extra 25% cover to meet directly associated
costs. Stand alone ASU policies can be bought and confusingly are now called
Income Protection. The cover conditions are identical to MPPI policies but
are normally costed higher. Both strains of policy are short term annually
renewable contracts althogh some hybrid contracts are now coming to market. It is important to compare ASU and Income Protection closely as one
may be more suitable than another.
Complete our ASU questionnaire for a comprehensive
quote
|
Related documents
sister sites
www.IncomeGuard.co.uk
www.incomeshield.co.uk |
