Permanent Health Insurance policies will pay a regular monthly tax free income for as long as you remain unable to do your job through illness or accident. They will continue paying this income until you recover, or die, or until you reach retirement age.
PHI policies are not the same as the payment
protection insurance that you can buy with your mortgage. These policies will
only pay
your mortgage for a short specified period, usually 1 or 2 years.
Permanent Health Insurance policies may pay out multiple times if you recover
and then are subsequently diagnosed with another
serious illness at a later date.
All Permanent Health Insurance policies are
written with something called a Deferred Period: Payment will only begin
after a certain period from diagnosis. You can set this period to between 1 and 24 months, depending on your circumstances.
Typically the deferred period would usually be set to coincide with when the cover provided
by your employer ceases.
Like all forms of protection insurance, the decision on which
route to take shouldn't be taken until you've made a proper assessment
of the risks specific to your general and financial situation. There's
no point in being over insured in the wrong areas and under insured in
the right ones..
Permanent Health Insurance policies are designed to provide you with an income in the event that you become too ill to do your job.
Footpath Financial Limited is a firm of Independent Financial Advisers who are authorised to advise on and arrange life insurance and related products. Based in Farnham and Crowthorne we serve the Guildford, Hindhead, Alton, Farnborough and Basingstoke areas. We are Authorised Representatives of the Financial Planning Partnership, who are authorised and regulated by the Financial Services Authority.