Permanent Health Insurance
What Would You like to Know?
How do Permanent Health Insurance plans work?
Permanent Health Insurance (PHI) is designed to provide a replacement tax free income if the unexpected happens and you are unable to work due to illness or accident. Benefit levels of Permanent Health Insurance plans are chosen with a view to maintaining your current standard of living and making repayments on outstanding loans or debts, including your mortgage.
How much cover can a Permanent Health Insurance plan provide?
The amount of benefit you can be covered for by a Permanent Health Insurance plan is normally determined by your salary. Normally up to 65% of your current earnings can be replaced by a Permanent Health Insurance policy, although any income from State benefits, pensions or other sources will often be taken in to account when benefit levels are calculated.
Cover can also be obtained if you are not working, and the amount available will vary from company to company.
How long will the cover provided by a Permanent Health Insurance plan last?
Most people set up their Permanent Health Insurance policy to run until any age from 50 to 65. The cover is permanent, which means no matter how many times you claim on your Permanent Health Insurance plan the cover will never be cancelled so long as the circumstances are legitimate, providing all premiums have been paid in full and on time.
How long will I have to wait before my Permanent Health Insurance plan starts to pay out?
When you take out a Permanent Health Insurance policy you choose the length of time you will wait between becoming ill and benefits starting to pay, with a minimum normally of 1 month. This can be extended to 3 months, 6 months or 1 year. This is known as the "deferred period". The shorter the deferred period is, the higher the cost of premiums will be.
How much will it cost?
Premiums on Permanent Health Insurance plans vary depending on age, sex, occupation, tobacco consumption and amount of benefit required. The term and deferred period of the income protection plan will also cause variations in premiums.