WHAT IS AN INCOME PROTECTION PLAN?
Most of us rely entirely on the health benefits provided to us by our employers. Am I correct in saying this? However, what would happen to your income if you were to suffer a prolonged absence from work owing to an illness or accident? Do you actually realise that your company income benefits could reduce over time or, if you are contracted or even self employed, may not even exist!

WHY DO YOU NEED AN INCOME PROTECTION PLAN?
Income protection is the cornerstone of financial planning. Without the ability to provide an income owing to illness or accident, the resultant loss of yours, and your family's financial security could be devastating. Notwithstanding the fact that any future financial objectives such as holidays, school fees and eventual retirement, along with the boat that you had always dreamed about, would be impossible to achieve. All of this in addition to your every day needs such as food, car and house payments!!

An Income Protection Plan will provide you with a regular monthly income when an illness or injury prevents you from working. The income will start after a deferment period of three or six months and you can select which deferment period suits your requirements according to the commencement of any shortfall which you otherwise would have received from your company. The income will continue to be paid until you are fit enough to return to work. However, if you are never fit enough to return to work the replacement income could be paid until you reach age 65, which would normally be your retirement age.

HERE ARE SOME FREQUENTLY ASKED QUESTIONS

Who can apply for cover?
The Income Protection plan is available to working expatriates between the ages of 18 and 55. You must be in good health, and in a non-hazardous occupation. The plan is also available to people who are self-employed. Contact us with your details and we will email you Information by return.

How much does it cost?
Your annual premium will depend upon your age, the amount of cover you require and the deferment period you select. Contact us with your details and we will email you Information by return.

How much cover can I buy?
You can insure up to 75% of your current annual salary subject to a maximum annual benefit of £90,000 or US$144,000 or €144,000. In the event of a claim, we will ask for proof of your salary at the time you become disabled. The amount of benefit you can claim cannot be more than 75% of your pre-disability salary. Contact us with your details and we will email you Information by return.

What is the deferment period?
The deferment period is the waiting period during which no benefit is paid. When making your application you must decide which deferment period you require. You can choose between a three-month deferment period, or a six-month deferment period. Contact us with your details and we will email you Information by return.

When does my Income Protection Plan pay me a benefit?
If after taking out the plan you have an accident or suffer an illness which prevents you from working for a continuous period of longer than your chosen deferment period, you can start claiming your Income Protection benefit. Contact us with your details and we will email you Information by return.

How much benefit will the plan pay me?
If you become Totally Disabled as a result of sickness or an accident, you can claim an income benefit based on the LOWER of:
a) the benefit you have insured,

Or

b) 75% of your pre-disability salary, (or, if you are self-employed, 75% of your average annual earnings over the past three years), LESS any state benefits you are receiving and/or any other disability benefit, retirement income or social income received from any source.

This means that if you are entitled to any benefit from the state or from another disability insurance policy, the amount of benefit you can claim from your Income Protection Plan may be reduced. Contact us with your details and we will email you Information by return.

What is the definition of Total Disability?
You are Totally Disabled if you are not able to perform the principal duties of your Own Occupation and you are not following any other occupation. Contact us with your details and we will email you Information by return.

How long will the income benefit be paid for?
Benefit ceases to be paid upon the earlier of the following:

a) When you are medically fit enough to return to work,
b) when you die,
c) when you attain age 65,

Notwithstanding (a) above, if after benefit has been paid for a period of twenty four months you are fit enough to follow any other gainful occupation for which you are reasonably fitted by training, education or experience, then no further benefit will be paid. Contact us with your details and we will email you Information by return.

What happens if I am fit enough to return to part time work?
As soon as you are fit enough to return to work, even on a part-time basis, your benefit will cease. Contact us with your details and we will email you Information by return.

What happens if I return to work and then suffer a relapse?
If following a period of disability during which benefit is payable you return to work but within 26 weeks from the date of your return you again become disabled from the same cause as the previous disability, your benefit will re-commence immediately.

If during a period of up to twice the deferred period, you suffer successive periods of disability from the same cause amounting in total to the deferred period, then benefit shall commence to be payable. In determining the amount of benefit, reference shall be made to your salary at the commencement of the earliest such period of disability. Contact us with your details and we will email you Information by return.

What if I am never fit enough to return to any kind of work?
Your benefit payments will be paid to you until you reach age 65. The amount of benefit paid will increase by 2% compound each year. Benefit payments automatically cease upon death. Contact us with your details and we will email you Information by return.

OK, HOW DO I OBTAIN MY PERSONAL QUOTATION OR ASK FURTHER QUESTIONS?
If you would like a free assessment of the costs and benefits involved with Income Protection Insurance item then click here. We will follow up with either a request for further information or a suitable recommendation for your needs.