TECHNICAL INCOME PROTECTION INSURANCE

WAITING PERIOD

BASICALLY, THIS IS THE LENGTH OF TIME BETWEEN AN ACCIDENT OR ILLNESS BEFORE YOUR PAYMENT STARTS PAYING YOU.

YOU CAN CHOOSE FROM 14 DAYS TO 2 YEARS, HOWEVER MOST OF OUR CLIENTS FIND THAT 30 DAYS PROVIDES THEN GOOD VALUE FOR MONEY.
HOW IT WORKS: 

• THE FIRST THING THAT NEEDS TO HAPPEN IS YOU SEEK MEDICAL ADVICE OR TREATMENT AS this is the day the insurers see as the date of disability.
• ASSUMING YOU CHOOSE A 30 DAY WAITING PERIOD AND YOU INJURED YOURSELF ON THE 15TH OF THE MONTH AND WENT TO THE DOCTOR THAT DAY.
• 30 DAYS LATER AND YOU STILL CAN’T WORK, YOUR PAYMENT WOULD START FROM DAY 30 ONWARD, AND WOULD PAY YOU UP TO 75% OF YOUR INCOME ON APPROX THE 15TH OF EACH MONTH YOU WERE OFF OR PART THEREOF.

The accident option benefit:

• IF YOU PAY A LITTLE MORE FOR AN “ACCIDENT OPTION BENEFIT” AND YOU CLAIM FOR AN ACCIDENT NOT A SICKNESS, THEN YOU CAN GET BACK PAID THE WAITING PERIOD AND ONLY HAVE TO BE OFF WORK FOR AS LITTLE AS 4 DAYS.
  
  
• MANY PEOPLE ON A TRADE, OR PEOPLE WHO ARE SELF EMPLOYED LOVE THIS OPTION AS THEY HAVE LITTLE TO NO SICK LEAVE OR HOLIDAY PAY AND MAY FEEL THEY ARE AT GREATER RISK OF HAVING AN ACCIDENT THAN AN ILLNESS.

BENEFIT PERIOD

THIS IS THE LENGTH OF TIME THE INSURANCE COMPANY WILL KEEP PAYING YOU UNTIL THE PAYMENTS STOP.
THIS COULD BE FOR A 2 YEAR PERIOD (24 MONTHLY PAYMENTS), A 5 YEAR PERIOD (60 MONTHLY PAYMENTS OR IT COULD BE FOR THE REST OF YOUR WORKING LIFE (UNTIL YOU TURN 65)
ULTIMATELY HAVING A POLICY THAT PROTECTED YOUR ENTIRE WORKING LIFE’S INCOME WOULD BE THE IDEAL; HOWEVER INSURERS DON’T ALWAYS OFFER THIS COVER TO ALL OCCUPATION, SO CHECK WITH US TO SEE IF YOU QUALIFY.

AGREED VALUE V INDEMNITY

THERE IS TWO WAYS OF CALCULATION YOUR INCOME:

• NOW... THE INSURANCE COMPANY NEEDS TO SEE PROOF YOUR CURRENT INCOME, THIS YEAR OF LAST YEARS, AND THEY CAN GIVE YOU AN AGREED VALUE ON THE BENEFIT YOU WILL RECEIVE UPON A CLAIM.

OR 

• AT THE TIME OF A CLAIM, THAT IS IF YOU HAVE A CLAIM IN 3 YEARS TIME THEY NEED TO CALCULATE YOUR INCOME IN 3 YEARS TIME AND THEY WILL PAY YOU UP TO 75% OF THAT INCOME,

THE PROS AND CONS ARE:

AGREED VALUE PROVIDES CERTAINTY THAT EVEN IF YOUR INCOME DROPS YOU KNOW HOW MUCH YOU WILL GET AT CLAIM TIME.

INDEMNITY PROVIDES UNCERTAINTY ON THE AMOUNT YOU WILL RECEIVE PER MONTH, AS IF YOUR INCOME HAS DROPPED THEN YOU WILL ONLY BE PAID 75% OF THE LOWER INCOME.

THERE IS HOWEVER A COST SAVING ON THE INDEMNITY SO THIS COULD BE A CONSIDERATION.

BUSINESS EXPENSES OPTION

IF YOU ARE A SOLE TRADER AND HAVE REGULAR BUSINESS EXPENSES THAN A DISCUSSION WITH US ABOUT A BUSINESS EXPENSES POLICY IS A MUST.

THINGS LIKE RENT, LEASES, ADVERTISING, INSURANCE, ONGOING BUSINESS COSTS THAT WILL CONTINUE WHEN YOUR INCOME STOPS.