Permanent Health Insurance (PHI) - These policies, commonly known as Income Protection, are designed to provide a tax free 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. PHI (Income Protection) policies are usually written to retirement age.
Accident, Sickness & Unemployment (ASU) - ASU policies were traditionally sold to accompany mortgages, allowing for a regular income to be paid to the insured should they be unable to work due to an accident, ill health or loss of job. The product can be split down, and unemployment cover is usually the optional extra available for an additional premium. Benefits are only usually paid for a specified time for example 12 months. It is important to compare ASU and PHI closely as one may be more suitable than another. It may also be possible to use the 2 products to work in tandem with each other.
Please contact us if you wish to discuss your income protection requirements.