Permanent Health Insurance
Permanent
Health Insurance
Permanent health insurance is a form of long term income protection cover. A permanent health policy pays out a tax-free monthly cas sum directly to you if you are unable to work for a prolonged period due to sickness or injury.
Permanent health insurance is available whether you are employed or self-employed and can provide financial protection right up to th day you retire.
Health Insurance
Life Insurance
Income Protection
Critical Illness Cover
Peace of mind knowing if you be unable to work due to illness or injury your income is protected.
Monthly tax free payments of up to 65% of your gross earnings paid direct.
Level and length of cover can be tailored to your specific requirements.
Multiple claims can be made over the policy term
Protection whether employed or self employed.
If you are looking for permanent health insurance but are a little unsure and need some guidance and a bit more information then let us help, don't worry there is no fee for this service.
Call 0800 612 7897, email us or click below and submit your details.
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Set a deferred period which aligns with any occupational sick pay you may receive.
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Guaranteed premiums may well work out cheaper for longer term policies.
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Be sure to choose the occupation definition which best suits your needs.
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Option to include indexation which ensures
your cover rises in line with inflation.
your cover rises in line with inflation.
When looking to buy any personal insurance it is vital to do your research to understand your options or let an expert do the leg work for you.
When looking for permanent health insurance it is important to recognise the differences between a permanent health policy and accident, sickness and unemployment policies. Permanent health provides long term cover for a proportion of your income should you be rendered unable to work due to illness or injury.
Accident, sickness and unemployment provides short term cover for a specific debt if you are unable to earn an income due to accident, sickness or unemployment.
General FAQs |
Policy Options |
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The benefits of permanent health insurance
For most of us it takes a life changing event, whether it is a new house or bringing a new person into the world to consider our financial protection.
Permanent health insurance can offer peace of mind knowing if you are unable to work for a prolonged period due to illness or injury a proportion of you income will be available to to meet your monthly financial obligations.
Finding the best permanent health deal
Finding the best deal when it comes to a permanent health plan is like finding any other cheap insurance, you must have a good basic knowledge of what is available and ensure you shop around.
Start by searching the web to gain an understanding of the insurers, their products and the cover provided. By asking a variety of insurers to quote you ensure a competitive price.
Each insurer has their own underwriting calculations which means one insurer may well look upon you in a more favourable than another and offer you better premiums
Useful Resources
For information regarding the regulation of the insurance market visit the Financial Services Authority website.
The FSA also provide a site to help consumers with money and insurance matters, an overview of income protection insurance can be found in their insurance section.
GuidesPermanent health cover can offer you the peace of mind knowing your monthly financial obligations are being looked after should you be unable to work to due to illness or injury.
The cover is designed to pay out a tax-free lump sum direct to you upon the diagnosis...read more
Such protection policies pay out a tax-free monthly income directly to you if you are unable to work ...read more
Personal Factors
As with many other policies permanent health insurance premiums are dependant on a number of personal factors and cover options you choose. Personal factors which the insurers consider include your age, your occupation, whether you smoke and any pre-existing conditions.
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Age
With increasing age comes the increased likelihood of being off work for a prolonged period of time due to illness or injury. Insurers take this into account when quoting and thus the older you are the higher your premiums will be.
Smoker
The risks associated with smoking are clear enough for us all to see. Most insurers deem any person who has smoked tobacco in the past 12 months as a smoker and in turn quote inflated premiums to account the additional risk.
Occupation
As the policy is designed to cover your monthly income it should come your occupation is considered a risk factor for the insurer.
The greater risk you occupation imposes on the insurer, whether it be stress or physical exertion the more likely your occupation could require prolonged periods off work and the more expensive your cover.
The more risky your occupation, whether it be stress or physical exertion the more likely your occupation could require prolonged periods off work, thus the more expensive the policy cover.
Pre-existing conditions
Pre-existing conditions can affect the premiums quoted and the cover provided by the policy, failure to disclose a condition could result in your policy being void.
Cover FactorsWhy permanent health insurance?
What would be the financial impact on you and your loved ones if you were to become seriously ill and unable to work? Would their be enough income and/or savings to cover your financial obligations and avoid financial hardship?
A permanent health plan can offer you peace of mind knowing it will pay out a tax-free monthly income directly to you if you are unable to work long term due to sickness or injury.
What about short term protection?
Permanent health insurance is designed to cover long term sickness or injury. If you are looking for a policy to cover you in the short term i.e. 12-24 months then there are alternatives.
To protect a specific debt such as a mortgage in the short term, if you are not working due to either accident, sickness or unemployment you should consider an accident, sickness and unemployment policy as an alternative to the long term protection a permanent health insurance plan provides.
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How much cover do I need?
Permanent health insurance can provide a tax free monthly income of between 50% and 65% of your taxable income, although some providers will offer up to 75%.
Length of cover
You can choose the length of cover your policy provides monthly payments should you need to claim. At the outset of your cover you will decide on the benefit period, it can be for as little as 2 years, 5 years or even until retirement.
Choosing a benefit period of 2 years means if you need to make a claim the plan will pay out for a maximum of 2 years if you do not return to work during this period.
Guaranteed or reviewable premiums?
Guaranteed premiums ensure your premiums remain fixed for the duration of the policy. If you opt for reviewable premiums the insurer has the right to assess the risk associated with your cover every 2 to 5 years and adjust the premiums accordingly.
At policy commencement guaranteed premiums will be higher than those of a reviewable plan however over time guaranteed premiums tend to work out cheaper as the premiums are guaranteed not to increase over time.
Deferred period
A deferred period is the time period from which you are initially off work due to illness or injury to the point where your policy will start paying you a monthly benefit.
When choosing a plan you have a choice of deferred period which range from as little as 4 weeks up to 52 weeks. As expected the longer the deferred period, the cheaper the premiums.
Own or any occupation
Own occupation definition means that the permanent health insurance will payout if you are unable to work in your own occupation due to sickness or injury, where any or suited occupation definitions are only likely to pay out if you are unable to do any sort of paid work.
Indexation
An optional extra which ensures your income protection cover increases with inflation during the term of the policy.
The amount of cover will increase in line with the retail price index(RPI) thus the real value of the payments will keep increasing in line with inflation over time
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