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.
Permanent Health Insurance
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.
Critical Illness Insurance
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.
