If you can’t work because of illness or disability, income protection insurance, also known as permanent health insurance pays out a tax-free income.
The income protection insurance aims to provide you with an income when you are unable to work due to accident or illness. The level of cover should be sufficient to allow you to maintain adequate standards of living in the short and medium term continuing through to retirement age if necessary. The maximum amount of income you can replace through insurance is broadly the after-tax earnings you have lost. This usually translates into a maximum of, say 60% of your before-tax earnings or net profit.
We believe that this is a key area of protection for dentists as if you are self-employed, you will not have access to state benefits and should you suffer a loss of income through accident or illness this can be detrimental to your family. We endeavour to analyse your situation and your requirements for income protection provision and we can customise a plan to suit your needs.
Income protection insurance is a more flexible type of insurance as there are more options we can look at to suit you. These include:
- Deferred periods;
- Indexation options;
- Cover increasing in claim;
- Adding investment elements;
- Combination of different levels of cover;