Income protection insurance (sometimes referred to as permanent health insurance) is designed to provide you with tax-free regular financial support (like an income, as opposed to a lump sum) if you need to take extended time off work because of illness or injury to avoid having to otherwise rely on savings, or on sick pay.
The main factors that affect the premium are matters such as:
The older you are, the greater the risk of passing away during the term of the policy and therefore the likelihood is that the premiums will be higher;
The current state of health
If you have severe health conditions, especially conditions that may limit life expectancy, the more likely you are to pay a higher premium for family income benefit;
Are you a smoker or a non-smoker
Medical experts universally agree that smoking significantly increases the risk of developing a serious and potentially fatal health condition and so insurers will increase their premiums accordingly;
Lifestyle and hazardous activities
Lifestyle habits, such as regularly drinking more alcohol than is recommended, or participating in hazardous activities, such as skiing could result in an insurer increasing the cost of your cover;
If any of your family have suffered a serious hereditary illness or an illness, then premiums may be increased to reflect the increased risk to insurers.
The important thing to remember is that every policy is different and will cover different conditions and levels of health and so as ever it is essential that the wording of the policy is checked in detail to ensure that it meets your specific needs.
The information provided in this article is not intended to constitute professional advice and you should take full and comprehensive legal, accountancy or financial advice as appropriate on your individual circumstances by a fully qualified Solicitor, Accountant or Financial Advisor/Mortgage Broker before you embark on any course of action.
For more information, please contact our advisors today.
on 0333 34 44 34 8