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Permanent Health Insurance (PHI)

Permanent Health Insurance (Income Protection) protects your income until retirement age or early retirement due to ill health. Customise your policy with various options and enjoy discounted commissions for lower premiums.

As a General Practitioner you will be fully aware of the impact a long term illness or disability can have on a individual and their family.  A Permanent Health Insurance policy (Income Protection) insures your income when you are unable to work due to sickness and/or accident and provides you with a “tax-free” income up to a specified age or early retirement (due to ill health).  You can insure up to approximately 60% of your income, although this can vary between insurers.  The reason behind obtaining a PHI policy is usually to be able to maintain your lifestyle, as commitments build up the older you get.

You decide how long you wait before the policy pays out – this should coincide with any other short term policy you may have, such as Locum Insurance in order to reduce the premiums involved.  It is not usually advisable to use a long term income protection policy for Locum Insurance cover.  It is important that the cover pays out when you are unable to carry out your own occupation rather than any occupation!

Variations of the Permanent Health Insurance (Income Protection) cover available:

  • Level or increasing benefit options
  • Guaranteed or reviewable premiums
  • Own Occupation, Any Occupation or Work Tasks
  • Waiver of Premium option
  • Deferred period up to 24 months
  • Guaranteed insurability option

Even if you already have an Income Protection policy in place, let us provide you with a quotation to see if you can save money.

We are able to provide quotations from a wide range of insurers and select the best cover for you as an individual. As an added bonus for our clients we discount the normal commission we would earn by a substantial amount and pass that saving directly on to you, in the form of lower monthly premiums. This offer is also available on the Life Cover we provide. To appreciate the savings you can make ask us for two quotes, one on normal commission and one on our discounted rate. It can save you hundreds of pounds a year!

Request a permanent health insurance (Income Protection) quote online or call us for free on 0800 163870 for advice.

Permanent Health Insurance (PHI), often referred to as Income Protection Insurance, is a type of insurance that provides a regular income if you are unable to work due to illness or injury. It ensures that the policyholder receives a portion of their income until they can return to work, reach retirement age, or until the end of the policy term, whichever comes first.

Income Protection Insurance is a type of insurance that provides you with a regular income if you’re unable to work due to illness, injury, or disability. This insurance is designed to replace a portion of your income, helping you cover your living expenses and financial obligations while you recover or adjust to a new situation.

The cost of Income Protection Insurance varies based on several factors, including your age, occupation, health status, the level of coverage, and the specifics of the policy you choose.

Income Protection Insurance is designed to provide financial support if you’re unable to work due to illness, injury, or disability.

Income Protection Insurance works by providing a regular income to policyholders who are unable to work due to illness, injury, or disability.

As a self-employed individual in the UK, you don’t have access to statutory sick pay, but you can consider several options to protect your income in case of illness:

  1. Income Protection Insurance: This policy provides a regular income if you are unable to work due to illness or injury. You can choose between short-term policies (covering a specific period) and long-term policies (which can pay out until retirement), typically covering 65-70% of your income.
  2. Accident and Sickness Insurance: This insurance covers a percentage of your income for a limited time (often one to two years) if you cannot work due to an accident or illness. It’s usually less expensive than comprehensive income protection.
  3. New Style Employment and Support Allowance (ESA): If you have sufficient national insurance contributions, you may qualify for ESA, which provides financial support during periods of illness.
  4. Universal Credit: This benefit is available if your income is low and can help cover living costs while you are unable to work.

It’s advisable to assess your financial needs and consider different insurance options to ensure you have adequate coverage for potential sick leave.

In the UK, sick pay insurance, also known as income protection insurance, provides financial support if you can’t work due to illness or injury. Here’s a brief overview of how it works:

Key Features:

  1. Policy Types:
    • Income Protection Insurance: Offers a percentage of your income (usually 65-70%) after a waiting period (deferred period) if you’re unable to work.
    • Accident and Sickness Insurance: Provides a payout for a specified time (like one or two years) after a qualifying period.
  2. Premiums: Monthly premiums vary based on factors like age, health, and coverage amount.
  3. Claim Process: After the waiting period, you can claim by providing proof of your illness. Payments begin once your claim is approved.
  4. Exclusions: Policies may not cover pre-existing conditions or certain illnesses, so it’s important to review the terms carefully.

For more detailed information on specific policies and options, check insurance providers’ websites or financial advisory resources.

The cost of sick pay insurance in the UK ranges. The premiums depend on various factors, including your income level, the type of coverage you select, and your health status.

Most policies offer different benefit levels, typically allowing you to choose a monthly payout of £500, £1,000, or £1,500. The insurance typically covers a percentage of your gross income, usually up to 70%.

To find the best option, it’s advisable to contact us directly, as coverage terms and costs can vary widely.

In the UK, income protection payments are generally not taxed if you have paid for the insurance policy yourself. This means that if you are the one who has taken out the policy and paid the premiums, any income protection benefits you receive will be tax-free.

However, if your employer pays for the income protection insurance on your behalf, the payments you receive may be subject to income tax. In this case, the benefits are treated like regular income, and you would pay tax on them at your normal income tax rate.

Here’s a brief overview:

  • Self-Paid Policies: Tax-free benefits when claimed.
  • Employer-Paid Policies: Benefits are taxable as income.

For more detailed information on this topic, you can visit resources from HM Revenue & Customs (HMRC) or financial advisory websites.

Income protection insurance in the UK provides financial support if you’re unable to work due to illness or injury. Here’s a quick overview of how it works:

Key Features:

  1. Coverage: It typically replaces 65-70% of your income.
  2. Policy Types:
    • Short-Term: Benefits last up to two years.
    • Long-Term: Payments can continue until you return to work or retire.
  3. Premiums: Costs vary based on age, occupation, and coverage amount.
  4. Waiting Period: Most policies have a deferred period, usually from a few weeks to several months.
  5. Claims Process: You must provide evidence of your inability to work; approved claims result in regular payments.
  6. Tax Implications: Benefits are tax-free if you pay for the policy; and taxable if your employer pays.
  7. Exclusions: Common exclusions may include pre-existing conditions.

This insurance offers peace of mind by providing a safety net during unexpected health issues, helping you focus on recovery without financial stress.

Income protection insurance in the UK provides financial support if you’re unable to work due to illness or injury. Here’s a brief overview:

Key Points

  1. Coverage: It typically pays out 65-70% of your income.
  2. Policy Types:
    • Short-Term: Benefits for up to two years.
    • Long-Term: Payments can continue until you return to work or retire.
  3. Premiums: Costs depend on factors like age, health, and coverage level.
  4. Waiting Period: Most policies have a deferred period before benefits start, ranging from weeks to months.
  5. Claims Process: You must provide evidence of your inability to work; approved claims result in regular payments.
  6. Tax Implications: Benefits are tax-free if you pay for the policy; they may be taxable if your employer pays.
  7. Exclusions: Policies often exclude pre-existing conditions.

Income protection insurance offers peace of mind by ensuring financial support during unforeseen health issues.

Income protection insurance in the UK is calculated based on several key factors:

  1. Salary: The amount you earn plays a significant role, as payouts typically cover 65-70% of your salary if you’re unable to work.
  2. Level of Cover: You can choose how much of your salary you want to insure, with higher coverage increasing your premiums.
  3. Occupation: Jobs with higher health risks can lead to increased costs, as they present a greater likelihood of making a claim.
  4. Deferred Period: This is the waiting period before the policy starts paying out. A longer deferred period generally results in lower premiums.
  5. Health Factors: Your current health status, medical history, and any pre-existing conditions are taken into account and can affect the premium rates.
  6. Claim Duration: Policies that offer payouts until retirement age will typically be more expensive than those with shorter payout terms.

The duration of income protection insurance payouts in the UK can vary depending on the specific terms of the policy. Here are the main options:

  1. Short-Term Policies: These typically provide benefits for a limited period, often up to two years. They are generally less expensive but offer less long-term security.
  2. Long-Term Policies: These can pay out until you return to work, reach retirement age, or until the end of the policy term. This means benefits could last for several years, potentially until age 65 or even longer, depending on the terms you select.
  3. Fixed-Term Policies: Some policies are set for a specific duration, such as five or ten years, after which the coverage ends regardless of your condition.

When choosing a policy, consider how long you might need coverage based on your financial situation and health. It’s advisable to consult with us to understand the options and choose the best fit for your needs.

Income protection insurance in the UK primarily covers:

  1. Loss of Income: It replaces a % of your salary if you can’t work due to illness or injury.
  2. Illnesses and Injuries: Most policies cover a wide range of health issues, including long-term conditions and mental health problems.
  3. Multiple Claims: You can make multiple claims during the policy term for different incidents of incapacity.
  4. Permanent Disability: Some policies continue to pay out if you become permanently unable to work.

Exclusions:

  • Pre-existing Conditions: Typically excluded if they existed before the policy was taken out.
  • Specific Illnesses: Some illnesses may not be covered.

Accredited

Medical Insurance Consultants Ltd is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 309026.

Personal

We are committed in providing a first class service to all our clients, not just when you take out a policy, but throughout the life of your policy. We make sure that you have the support and advice needed when it comes to claiming.

Professional

We have been operating for over 30 years specialising in the insurance needs of healthcare providers and professionals. Our aim is to continue to develop, innovate, improve and reduce the cost of insurance for all our clients and future clients.

Contact us today to see how much we can help you save

Let us provide you with a quote and you can see the benefits for yourself

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