Replacement Income When Illness or Accident Stops You Working
|Cover is permanent. Once accepted cover cannot be cancelled by the provider.|
|Option to have benefits payable after just 3 days of illness / accident! ideal for the employed or self-employed where prompt payment is required (Not available on budget cover).|
|Benefits are paid if you cannot do your own occupation as a result of sickness or accident.|
|Benefits are payable until you return to work or the end of the plan term! (Claim period maybe limited on budget cover).|
|No limit on claims (multiple claim policy).|
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Personal Income Protection
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Permanent Health Insurance (PHI) Explained
As its name suggests Permanent health Insurance (PHI) is a contract designed to provide long-term income protection against sickness or accidents that prevent you from working with benefits payable up to your chosen retirement age. There is usually a waiting period which you choose at the start of the plan before benefits will be paid this can be from 3 days, which is ideal for self-employed or employed when prompt payment is required (available with Exeter Family Friendly Professional Income Protection - Exeter Family Friendly Personal Income Protection) , 1 week, 4-weeks, 8 weeks, 13-weeks, 26-weeks, 52-weeks or 104-weeks).
With income protection the amount of cover you may protect is typically limited by the product terms and is typically 50% of your annual gross earnings although some providers may go to 70%. Benefits are normally paid tax free in a claim. Exeter Family Friendly Bills & Things is a type of income protection however the cover amount is not limited by your income so you may chose to protect between £500 per month or £1,000 per month without any evidence of income at application or claim stage. "This cover is particularly useful to the employed or self-employed on low income wanting to cover more than just 50% or 70% of their earnings or those just starting their business as evidence of earnings (accounts) would not be required to support a claim." Exeter Family Friendly's Bills and Things will also ignore continuing employer payments and other benefits from other income insurance policies.
With most other sickness insurance policies (except Budget Income Protection) it is important that you ensure that you don't have cover which overlaps over policies and also any employer support, otherwise you maybe paying for cover you don't need as the claim maybe restricted to the maximum cover amount when taking into account other benefits from your employer or other policies.
When Will the Plan Pay Out?
Permanent Health Insurance provides a regular income benefit to replace your earnings should you become unable to work due to illness or injury and pays out the benefits after you have past the waiting period (also called deferral period) and MEET the definition of disability that you have been offered under the terms of your cover. With Exeter Family Friendly they only offer the highest protection "own occupation" cover so it will pay out when you can't do your own job. Other providers offer definitions based on the risk of your occupation therefore more manual and risky your job the claims will be assessed on a definition of disability that could be unrelated to your job. The main types are:-
Own Occupation - Disability Definition
An important aspect of the plan is that a claim can be considered should you become unable to do your own occupation. This definition clearly offers the highest protection as a claim will be paid should you be unable to do your own occupation. However most income insurance providers only offer this high definition of cover to those who are in low risk occupations but we offer OWN OCCUPATION cover for almost all occupations including pilots and those who participate in contact sports or other high risk activities.
Any Occupation - Disability Definition
The plan will only merit a claim should you become unable to carry out any type of occupation at all.
Any Suitable Occupation - Disability Definition
An important aspect of this plan is that a claim can be considered should you become unable to do your own occupation or any occupation to which you are suited, by training or experience. This is clearly preferable to a definition of disability that requires the inability to carry out any occupation.
Example of Claims
What Options Are Available?
Waiting Period Options Before You Can Claim
As you might expect the shortest waiting periods are normally offered to those in very low risk occupations. We have access to providers who will offer Back to day 1 cover after just 3 days of illness ideal income protection for self-employed or employed (payable after 3rd day) for most white and blue collar workers with OWN OCCUPATION of disability. Other options include 3 days, 1 week, 4-week, 8 week, 13-week, 26-week, 52-week or 104-week waiting periods.
How Long The Cover Should Last?
You can choose for your plan to end at any age between 50 and 70 but with most providers cover stops at age 65 although Exeter Family Friendly Personal Income Protection can continue to age 68.
Automatic increases to your benefit payments in claim
In order that the level of benefits in payment are protected against the effects of inflation in the event of a claim, these should be indexed by a fixed percentage or linked to an index such as Retail Prices Index (RPI), Average Prices Index (API).
In order to provide some protection against the effects of inflation, the level of cover automatically rises by a percentage you choose per annum or by the rate of inflation.
The premiums themselves are not subject to renewal or review by the insurance company except to the extent that they will rise in proportion to any rising cover. This is a major advantage. However having guaranteed premiums will for some be prohibitive as a result of their occupation. As it does not offer those work is more hands on/manual the best level of cover being unable to do your OWN OCCUPATION.
Premiums are subject to renewal on a regular basis. This means they will increase as you get older and may also be adjusted to reflect the company's actual claims experience.
Premiums are subject to review on a regular basis. They may therefore be adjusted to reflect the company's actual claims experience. The contract however, remains a permanent one and your own age or medical condition will not affect future premiums.
Age Costed Premiums
Some providers price your premiums according to your age, so they will rise every year. This has significant benefits as it can make this type of cover more affordable as premiums can be significantly lower than renewable, reviewable or guaranteed premiums.
Permanent Health Insurance - 3 months free Cashback Terms
Use us for your Permanent Health Insurance cover and we will give you cashback after acceptance of your policy.
- Cashback is paid after the second month and once you have made the 2nd monthly payment.
- Policy term must be for 10 year of more. Shorter policy terms will attract cashback but this maybe to be less.
- The cashback is a rebate of our commission, which is paid in advance of the earnings period typically 36 with Exeter Family Friendly Income Protection and 24 or 48 with other providers. Cashback is only paid on the basis that you maintain the cover for the commission earnings period or longer. Should the policy stop or be altered within this earnings period the provider may request repayment of any unearned commission from us and you agree to repay on our demand your percentage share based on the percentage paid to you as cashback.
- We reserve the right to delay paying the cashback until after the commission earnings period if we suspect the policy has been taken out for the sole purpose of acquiring the cashback with no intent of maintaining the cover.
- These cashback terms do not affect your Statutory rights.
- We reserve the right to alter these terms at anytime and if we do shall take immediate effect.