What the Government Provides - Benefits

Unlike personal accident insurance contracts, there is no time-limit of 304 weeks for receiving benefits for these permanent policies. If you become disabled, you will receive a regular weekly or monthly income up to an agreed age or until the end of a fixed period, until you are once more able to resume work.

If your illness means that you must change jobs to work in a different field from your normal occupation, most companies will pay you a reduced weekly benefit to compensate for any drop in your earnings.

Choice of policies

Although life offices have only recently expanded this form of insurance, there are many variations in the policies available on the market.

You can choose to begin receiving benefits immediately on disablement, or you may prefer to wait four, thirteen, twenty-six or even fifty-two weeks before any income is paid to you. The longer the period of deferment, the cheaper your policy premiums become. If you are self-employed, you will need cover almost straight away, but if your employer continues your salary for three or six months during your absence from illness, then you will not need any insurance cover during this time. You should, therefore, select a policy with benefits commencing as soon as your salary ceases to be paid.

Your policy should continue until you expect to retire, but if this is after you are 69, companies will normally insure you only to your 69th birthday. Your chance of illness increases considerably once you reach this age.

Check that your policy allows you to discontinue paying premiums while you are ill. This additional benefit is very cheap, and prevents your having to deduct premiums while you are receiving benefits.


What the Government Provides

Payroll Giving
It’s all very easy to organise.
Just ask the Personnel or the Payroll Department at your company and, if they already have a scheme, they will give you the relevant forms.  HM Revenue & Customs’ website has a list of Payroll Giving agencies and explains payroll giving in more detail.

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read on: What the Government Provides - How much cover?

Unlike personal accident insurance contracts, there is no time-limit of 304 weeks for receiving benefits for these permanent policies. If you become disabled, you will receive a regular weekly or monthly income up to an agreed age or until the end of a fixed period, until you are once more able to resume work.

If your illness means that you must change jobs to work in a different field from your normal occupation, most companies will pay you a reduced weekly benefit to compensate for any drop in your earnings.

Choice of policies

Although life offices have only recently... see: What the Government Provides - How much cover?