Income Replacement Insurance and Pancakes
What Have Income Replacement Insurance and Pancakes got in Common?
They're both 'flipping brilliant!'
This Income Replacement product protects the income of individuals in the event of them being unable to work for a prolonged period of time, due to accident or sickness.
It is a specialised product which can be purchased on a key person, group or private client basis.
Great ingredients in a quality product... Should the client claim within the policy period, a monthly Temporary Total Disablement (TTD) benefit will be paid for up to a maximum of 5 years following a selected deferred period.
A lump sum Permanent Total Disablement (PTD) benefit will be paid at the end of the 5 year period should the insured be unable to return to work. The cover is usually purchased on an "own occupation" basis, which covers the client for their occupation only, which means that the policy will pay out if the client can no longer perform that occupation and that occupation only.
Total Temporary Disablement Benefit The benefit will be paid if the insured person is unable to work due to accident or sickness beyond the selected deferred period. A monthly benefit will then be paid for a maximum period of 60 months. The benefit will cease if the insured person returns to work or reaches their normal retirement age (maximum NRD is age 70).
Permanent Total Disablement Benefit At the end of the maximum 60 months payment period for TTD, if the applicant is proved to be permanently and totally disabled (PTD) then the lump sum will become payable.
The PTD benefit may be used for a variety of purposes. It is sometimes used to fund the cost of adapting a home for wheelchair access or other specialist medical equipment required. It may be used to generate further Income. It is for the insured to determine how the funds are utilised.
We are a friendly team, proud of the way that we support financial advisers to write Income Replacement. If you think we can help, please do get in touch!