Income protection insurance, or commonly known as permanent health insurance (PHI) is a long-term protection scheme, which is designed to pay out if you were unable to work due to an injury or illness, typically income protection covers you until either: retirement, death or your return to work, although have recently been released a shorter more costly term contract. Income protection is one of the most important insurance policies a working person should have due to the harsh reality of loosing income due to illness or injury.
All payouts for income protection are tax-free and are normally around 50-75% of your earnings previous to the illness/injury. At the beginning of the protection you would have to agree a period of time for the insurer to issue your pay out if you were unable to work during the policy, this period tends to be around 12-25 weeks dependent on the agreed term. The payout made by the insurer can be spent in any way you would like, from paying off bills to buying grocery shopping. Speak to one of our advisors now if you would like any additional information and advice.