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Type of Cover.
These policies provide an income that starts after a deferred period of your choice if you are unable to work through sickness or injury.
They usually have a fixed term to retirement age 60 or 65.
Once the policy is accepted by the insurer the premiums cannot be increased or claims refused regardless of the number of legitimate claims.
Some insurance companies have introduced reviewable premiums that increase dependent on overall claims experience.
There is a maximum insured income limit. Levels of cover may vary but may be in the region of 50%-65% of previous income.
Policy Details.
Premium rates are based on occupation, age, health, level of cover, term, deferred period, sex and smoking status.
Care must be taken over examination of the circumstances in which the insurance companies will pay out.
If as a result of sickness or injury you cannot carry on your normal line of work, the insurer may not admit the claim unless you are incapable of performing any paid employment.
The benefits from an individual policy are not taxable.
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