Many people are unaware that they are six
times more likely to have a serious illness that requires
hospitalisation or a number of weeks off work, than they
are to die before the age of retirement.
It is therefore essential that you give
the same or even greater importance to arranging health insurance
when you are looking at life cover. In fact, it is now possible
to obtain contracts that cover you for both eventualities.
By completing this very simple fact-find, we can assess your
needs and give you some idea of the cost of covering yourself
or your partner.
This policy is designed to pay out a weekly or monthly amount
to replace A proportion of your income in the case of long-term
illness. However, there is a maximum of 50% of your gross
pay that can be covered by this type of policy. There is
a deferred period during which no money is paid which is
normally between 4 weeks and 13 weeks. This period is normally
covered by your employer under your contract of Employment.
However, the Deferred Period can be as little as one day
and as much as two years.
In many cases, the policy premium is paid
for by your employer to reduce their need to pay you during
an extended illness.
There are various forms of these PHI contracts
and you should take advice from an independent financial
adviser as to the most suitable form before making the decision.
In particular, if you have a previous condition, then this
may be precluded from the cover given.
These policies are designed to pay out a lump sum if you
are diagnosed with any one of a number of named serious
conditions.
The conditions covered vary from company
to company, but will normally include Cancer, Heart Attack
and Stroke. There will frequently be a long list of other
conditions such as MS, Motor Neurone Disease, loss of sight,
hearing and limbs, and others, the details of which vary
between insurance companies.
The important difference is that the sum
is paid while you are living to allow you to deal with your
financial affairs, but does not automatically pay out on
death although his may be included at a higher premium.
For companies with Key Personnel whose
absence due to a serious illness would cause a problem such
as sales management or the technical staff, then it is possible
to insure against this occurrence, where the compensation
is paid to the company.
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