Sure, you pay a replacement income if unable to work due to illness or accident, the peace of mind.
Legal Sick Pay (SSP) is defined by your employer for a maximum of 28 weeks, but it is unlikely that an adequate income protection in case of serious illness.
With insurance, you can use for a variety of diseases such as heart disease, cancer and mental illness.
The advantages
Long-term illness is something I prefer not to think about but official figures indicate that each year more than 670,000 men aged 40 to 64 released from work for more than six months, because it is. Many are suffering financial hardship as a result.
If you are an employee can not work due to illness, may Statutory Sick Pay (SSP) for up to 28 weeks. But the rule is only £ 79.15 per week.
The state provides a minimum of support, with strict rules for the reduction of earning capacity benefit. After 28 weeks of illness applicant shall undergo an examination of its ability to carry out a series of works in relation to activities such as walking, sitting and using stairs. Even if requirements are met, the benefits are not generous, and are taxable.
PHI may be the answer. ISP is also known as income replacement insurance, income insurance, disability insurance long term disability income insurance or personal disability and is supported by most insurance companies.
Pays a regular income, with the standard of living, if you have a long-term illness or injury. Benefit usually starts after an initial period of four, 13, 26 or 52 weeks and is paid until you return to work, politics or the duration expires, whichever comes first.
It is permanent because the insurance policy may not cancel no matter how often you are entitled to benefits even if the policy usually ends when the insured is 60 or 65 years. Insurance companies will not write new policies for applicants within five years of age.
If one considers this type of insurance to speak with an independent financial adviser. No two are the same ISP, because the exceptions are very different. A consultant should be a system that can find for your work and your financial circumstances.
Some employers offer a program of PHI to the workers. If your company offers, make sure you are covered by the scheme. Many employers offer their employees group for free, but even if not free, the premiums are usually much cheaper than if you bought the same for you.
