Protection Policies
Income Replacement
In addition to income replacement requirements that are dictated by ill health or injury, it is also possible to insure against loss of income caused by redundancy
The policy will usually have the option of the insured selecting a deferred period -4, 13, 26 or 52 weeks being the standards - with no benefit being paid during the deferred period. The trade off for this is that premiums are usually lower the longer the deferred period.
Benefits are paid tax free, however, payments would cease once new employment was found.
