Protection Policies
Permanent Health
Insurance
As the name suggests, this is a form of health insurance as opposed to life assurance
It will pay out in the event that the insured is unable to work as a result of either illness or accident. It pays out in the form of a regular income, in effect to replace the salary payments that the insured had become used to.
Payment is made if the it is the opinion of the provider, that the insured cannot undertake work. However in many instances here is a deferred period - either 4,13, 26 or 52 weeks. During the deferred period no benefit will be paid and therefore premiums tend to be cheaper in relation to the length of the deferred period.
In most cases the benefit ceases should the insured return to work, although it is possible to obtain a continued benefit if the insured is forced to seek a lower paid job as a result of the disability.
In the majority of cases, under current legislation, the payments are made free of tax and are not deemed taxable income.
