Permanent Health Insurance: Providing financial security in the event of long term illness

What would you do if you were unable to work due to an accident or sickness for a long period of time? Some employers are generous and often will pay income for up to a year (depending on contractual agreements), but there are also employers who are not so generous and may not provide any income above the statutory amounts.

How would you cope when the income stops. How would you pay your bills, mortgage, the food bills, credit card, etc? From the State? The Government currently pay a maximum of £81.35 per week and this can be taxable - would this be sufficient? It is unlikely!

One way to protect your income is with Permanent Health Insurance (PHI) that can provide up to 65% of you gross salary tax free. This would continue until you return to work or retire - whichever happens first.

For example, a male non-smoker aged 30 earning £24,000 per year could protect up to 50% of his earnings approximately £12,000 per year (£230.77 per week) for less than £17 per month with standard indexed cover with a deferred period of three months (i.e. benefit payments would commence after three months of incapacity and would increase in line with the Retail Price Index.).This would mean that if he was unfortunate enough to fall ill or have an accident in the first year of his cover, and was unable to return to work until a retirement age of 60, there would be a potential benefit payment of over £360,000 to provide financial security and pay the bills.

If you wish to know more about Permanent Health Insurance, have any questions or require a quote please contact us via the questions section of our secure enquiry form. IT COSTS NOTHING TO ASK AND THERE IS NO OBLIGATION.

Lewkay Financial Services
3c Sopwith Crescent, Hurricane Way, Wickford SS11 8YU * Tel: 01268 762200 * FAX: 01268 762292

Authorised and regulated by the Financial Services Authority