Serious Illness Versus Income Protection
th Nov 2016 |
When it comes to Serious Illness versus Income Protection Insurance, we are often asked the question, by those working and not yet nearing retirement, which Insurance is best for me?
Serious Illness V Income Protection
The answer is that these are two very different benefits, in that Income Protection covers accidents, as well as illnesses, with benefits paid out over time. Whereas Serious Illness cover pays a once off tax-free lump sum on the diagnosis of a specified serious illness.
The serious illness claim is normally paid out 14 days after confirmed diagnosis, whereas dependent on your chosen claim waiting period (must people opt for 13 weeks) it takes 3 months before pay-out.
Also, income Protection considers the risk of your occupation, as well as your medical health in calculating the premium and not all occupations can get cover.
What to do?
If you can afford it and don’t already have Income Protection provided by your employer, then you should consider having both Serious Illness Cover & Income Protection Insurance!
If you are diagnosed with a specified serious illness covered by your insurance policy, the tax -free lump sum payment will come in very handy, but what if you can’t return to work? It will eventually run out, so you would need Income Protection Insurance!
If you could not work due to an accident of illness the income replacement would be needed and benefit payment could continue right up to retirement age, but what if you need a lump sum to clear some larger bills, or make some home renovations, to make life easier, in this event, you would need Serious Illness Cover!
What if I can’t get Income Protection?
If you can’t get Income Protection due to your occupation being considered to high risk then, you should investigate a Serious Illness policy with Personal Accident benefit added on.
Right now 3 major insurers offer Personal Accident Benefit as an optional added cover under a life and or serious illness insurance policy, these are Irish Life, New Ireland and Zurich Life.
What if I can’t get Serious Illness Cover?
If you can’t get Serious Illness Cover due to your current health, you may be able still able to get cancer cover.
Right now only Zurich Life provide cancer cover and will allow a discount on their premium.
For more information, please call me on: 1890 727 111 or click here:
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