Income Protection Insurance Deferred Period

Our income protection calculator will help you decide how much of your income you need to protect.

Income protection insurance deferred period. It should not be regarded as a substitute for advice from a financial broker. So if you choose a 4 week deferred period your policy pays out after 4 weeks absence from work. Recently friends first have joined them in paying out after just 4 weeks absence from work. As an example an income protection insurance policy with a 4 week deferred period will commence income payments once the policyholder has been off work for a period of 4 weeks.

Deferred periods minimum deferred period for driving based occupations 4 8 13 26. On our income protection quote machine you can choose various deferred waiting absence from work periods namely. 1 month 2 months 3 months 6 months 12 months. The longer the deferred period the lower the premium.

An individual will get their first payment at the end of their deferred period which they set when they take out their plan. The deferred period will start on the first day the individual is unable to work and ends when they have been continuously incapacitated for either. You can claim salary protection when you have used up your employer s sick leave entitlements and passed the scheme deferred period. What is the shortest deferred period for income protection.

The minimum waiting period for income protection is known as a back to day one deferred period. When taking out an income protection insurance policy one of the most important decisions you need to make is the length of your deferred period. Half pay ill health early retirement pension temporary rehabilitation remuneration state illness benefit. Currently the shortest waiting period for income protection permanent health insurance is 4 weeks.

Up to 75 less any other income to which you may be entitled e g. The length of your deferred period will effect several aspects of your policy and will have a significant impact on the monthly premium you pay so it s important that you are well informed from the outset. With this type of policy you would only need to be out of work for 3 days before you can begin claiming and after those three days your benefit would be backdated to the first day you were unable to work. Income protection can help provide your clients with an income if they can t work.

With short term income protection also known as accident sickness and unemployment cover there is often an option to choose a deferred period with back to day 1 cover which means when a claim arises benefit payments will be paid back to the start of your claim.