Serious Illness Versus Income Protection

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Serious Illness Versus Income Protection do you know the difference? When it comes to Serious Illness Cover and Income Protection Insurance, we are often asked the question which Insurance is best?

Serious Illness V Income Protection

The answer is that these insurance policies provide quite different benefits.

Income Protection covers accidents, as well as illnesses with the benefits paid out over time, right up to retirement age.

Serious Illness Cover pays a once-off tax-free lump sum on the diagnosis of a specified serious illness.

A Serious Illness Cover claim is normally paid out 14 days after confirmed diagnosis, dependent on your chosen claim waiting period (most people opt for 13 weeks) whereas with Income Protection, it typically takes 3 months or more 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 coverage.

Which Insurance to Choose?

If you can afford it and don’t already have Income Protection provided by your employer, then you should consider having both Serious Illness coverage and Income Protection Insurance!

Why consider both insurances?

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 will need Income Protection Insurance!

If you could not work due to an accident or illness 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 be high-risk, then, you should investigate a Serious Illness policy with Personal Accident benefits added on.

Right now 3 major insurers offer Personal Accident Benefits 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 Coverage?

If you can’t get Serious Illness Coverage due to your current health, you may be able still able to get cancer coverage.

Right now, Zurich Life provides cancer-only coverage and will allow a discount on their premium.

For more information, please call me on: 01 8450049 or click here:

Ken O’Gorman

One Quote – Financial Brokers

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