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Income Replacement Cover

Pulse’s 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.  It has two key benefits:

  • A monthly benefit paid for up to 5 years
  • A lump sum payment at the end of the 5 year period if the insured is unable to return to work.

The recent ABI paper on welfare reform made it clear that many families, even those with relatively good standards of living, can really struggle if a wage earner has to take a significant amount of time off due to ill health or an accident:

“There are a very large number of middle income working age households that would see their household incomes fall substantially if the main earner left work due to ill health.”  (Source: ABI)

At Pulse we receive enquiries from many individuals and companies who recognise the need for cover but for various reasons find that what is available from the UK standard market is not suitable.  In particular we see enquiries from:

  • Self-employed
  • Expatriates
  • Individuals who travel with their occupations, including travel to hazardous countries
  • Individuals who have a significant portion of their income paid as dividends or bonuses
  • Company paid schemes including those for older employees
  • High benefit levels including benefit in excess of £250,000 per year

Full Income replacement cover is not usually available if someone has had a history of ill health although we can sometimes exclude a specific condition or look at accident only cover or cover for shorter benefit periods as an alternative. 

Cover is usually on an "own occupation" basis, which means that the policy will pay out in most situations as long as the client can no longer perform their usual occupation.

The premium is an annual premium, payable at inception of the policy.

Unlike most Income Protection policies our policy is annual with renewal requiring a Declaration of Health or a Proposal Form, although Medical evidence may be required if the Insured's health has changed in the past year

This product can cover up to 75% of the client's salary. However, if there is sufficient justification, underwriters can extend this to 80%.

It is possible to obtain 100% of salary cover in respect of groups.  Deferred periods can be anything up to 12 months.

 

Case Studies

Male, 34, non-smoker

Suffers from MS

Management Consultant

4 week deferred period

Retirement age: 65

Monthly benefit: €6,250

PTD (usual occupation) lump sum: €603,325

Neurological exclusion

€2,073 gross annual premium

Male, 49, non-smoker, Singapore national

Heart condition and extensive travel

Senior banking executive

26 week deferred period

Retirement age: 65

Monthly benefit: £25,000

PTD (usual occupation) lump sum: €1,343,000

No exclusions

€20,664 gross annual premium

For more information please contact one of the team.

Telephone:   01280 841430      E-mail:  admin@pulse-insurance.co.uk

Transferring to STB…