Have You Heard of Income Protection Insurance?
Posted by admin in Insurance on 11-10-2011
Have you heard of Income Protection Insurance? Well, income protecting insurance aims to provide for a tax less income till your specified retirement age which is generally between 50-70, in case you are not being able to work for any disability or illness. This is also known as PHI or Income Insurance/ Income Replacement. There are many such insurance companies in UK that offer for the PHI and most of them provide for 50-65 percent of your salary per annum. Many people plan to insure nearly 50 percent of their total income but some choose to cover only the mortgage payments.
The prices here would vary from one insurance agency to another. The premiums in Income Protection Cover are calculated on the basis of the coverage you need depending on your present health, age, occupation, smoker status etc. While applying for PHI, you have to specify the deferment period say 4/ 8/ 13/ 26/ 52 weeks. It actually implies the span you have to stay off work prior to the claim. However, it’s to be mentioned that PHI does not provide coverage for normal pregnancies as well as HIV/AIDS, until it’s contracted accidentally during blood transfusion or due to certain occupations.