Income protection or Permanent Health Insurance is
designed to give you peace of mind that should you be
unable to continue providing for yourself or others,
you won't be left in complete financial disarray.
PHI policies will not specifically pay off your mortgage
or other loans, nor will it pay for private medical
treatment or special needs that arise through disability.
What it will do is provide you with a regular weekly
or monthly income if you become unable to work as a
result of accident, sickness or disability. Income protection
is payable when the person covered by the policy becomes
unable to work due to long-term sickness, or incapacity
due to injury or disability.
PHI income protection policies will have a deferral
period specified in the policy details. This is the
length of time that you have to be out of work before
benefits become payable. The standard deferral periods
are usually 4, 13, 26 and 52 weeks. The benefit will
commence at the end of the deferred period and will
continue until the earliest to occur, that is:
