This type of policy ensures an income when the holder is unable work due to illness, injury or accident.
It is ideally suited for the self employed or employees not covered by an employers group scheme.
The maximum benefit is 2/3rds of the insured person’s salary to ensure the incentive to return to work is maintained.
The benefit is payable to a chosen age usually 60 or 65 with other options available such as when benefits start, indexation of benefit and premium.
If you were unable to carry out your normal occupation for a prolonged period due to an illness or injury, could you continue to meet your commitments? Who would pay your mortgage repayments, maintain your personal loans, your medical bills or even your children's school expenses?