In the event of sickness, a permanent health
insurance (PHI) policy may be more suitable for you. Most insurers
cover up to 75% of earnings but some have begun to drop their
limits since the government waived tax on income replacement
pay-outs last April. Most insures only pay 60% of salary.
Common exclusions from PHI cover are pregnancy
and childbirth, alcohol, drugs or self-inflicted injury, HIV
and Aids and war risks.
The policyholder can decide how long they
wait before the policy pays out. Income can be deferred for
between 2 weeks and 104 weeks, but shorter deferral periods
mean higher premiums. (The normal deferred period is 13 weeks)
Once you have been signed off by a doctor as unfit to work,
PHI will pay a regular monthly income (after an initial excess
period) until you recover, die or reach your chosen policy termination
age, normally retirement at, say, 65.
Need more help? Why not give us a call,
or click here to contact
us by email.
