Insurance
Income Protection
The aim of personal income protection is to protect your income throughout your working life. The maximum cover available is 65% of your normal earnings up to £50,000 and 1/3 of earnings in excess of that, less the current state long term incapacity benefit.
The time between the commencement of illness and when benefit is paid is referred to as the deferred period, typically anywhere between 4 and 52 weeks. The deferred period selected should reflect the arrangement you have with your employer regarding the payment of salary when your are unable to work, but the longer the deferred period, the lower the premiums.
If you are self employed, you will need to consider for how long your income will be unaffected by your inability to carry out your normal work.
There is no point in over insuring yourself, as you will be required to provide evidence of earnings to make a claim. For this reason, it is essential that the level of cover selected reflects your current earnings and also any continuing benefits you might receive from a company scheme.
The current tax position on income from PHI is that benefits are not taxed.
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St Barts Finance Ltd is an appointed representative of Openwork Limited, which is authorised and regulated by the Financial Services Authority
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Tel: 01202 520550