Permanent Health Insurance

Permanent Health Insurance

Permanent Health Insurance (PHI) is a form of protection policy that provides an income should you be unable to work due to long term sickness or accident.

Statutory Sick Pay (SSP) may be payable for up to 28 weeks however this is likely to be payable at a much lower rate than most individuals usual earnings.

PHI is also known as income replacement insurance, income protection insurance, long-term disability insurance, disability income insurance or personal disability insurance and is available from most insurance companies.

PHI is designed to pay a regular income to protect your standard of living if you suffer long-term sickness or injury. Benefit usually starts after an initial deferred period of 4, 13, 26 or 52 weeks and it is payable until you return to work, die or the policy term expires, whichever happens first.

It’s called ‘permanent’ because the insurer cannot cancel the policy no matter how often you claim for benefit, although policies usually expire when the policyholder reaches 60 or 65. It is possible to choose a shorter term however.

This information is only the very basics of this type of protection and shouldn’t in any way be considered to be advice or replace advice. It’s important that you are fully aware of all the facts to ensure that you get full benefit from any protection policy.


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