A Guide To Life Insurance - Permanent Health Insurance ....


Find Out More


Permanent Health Insurance...

Though it is not really life insurance, permanent health insurance is issued by many life insurance companies and is, unlike fire or accident insurance, a long-term contract.

In return for an annual premium the company guarantees to pay a specified annual income to the policyholder if he or she is unable to work as a result of illness or disablement.

The contract runs to retirement age, normally 65 for men and 60 for women, though if earlier retirement is intended the term may be shortened. Since the policies provide no life insurance benefits, no tax relief is allowed on the premiums.

A number of basic conditions are stipulated by all the offices issuing permanent health insurance (PHI) policies. The maximum proportion of earnings that may be insured as an annual benefit is usually about three-quarters.

Some illnesses (particularly those resulting from excessive use of alcohol or drugs) are excluded.

If the policyholder is able to work only at a different, less well-paid, occupation, only a proportion of the annual benefit will be payable.

2015 - Guide To Life Insurance - New for 2015 ....

Other readers found these pages interesting


Read On: click here for An Online Guide To Life Insurance - Taxation .

Premium rates relate not only to age and health (with great attention being paid to medical history, especially if the policy is substantial) but also to occupation, some high-risk occupations being subject to a heavy extra premium.
The premium is also determined by the period of illness that has to elapse before the benefit becomes payable. This "deferred period" may be 4 weeks, 13 weeks, 26 weeks, and even up to 104 weeks, and the premium is obviously much lower for the longer deferment......... see: click here for An Online Guide To Life Insurance - Taxation .


Our insurance website is an independent marketing website which acts as an introducer to 'whole of market' companies who offer specialist Independent Financial Advice. Each company is authorised and regulated by the Financial Services Authority.


We are not authorised to give advice and we are not liable for any financial advice provided by, or obtained through a third party. The information published on this website is for information purposes only. This site has been approved for compliance purposes by a Firm of Independent Financial Advisors who are authorised and regulated by the Financial Services Authority (FSA). The Chartered Insurance Institute

Giving power to the reader...

  • To contact us, send an email and we will get back to you as soon as we are able. If you are looking for independent life insurance quotations then click here. If you are looking for any of the folliowing: Car insurance
    Bike insurance, Travel insurance, Home insurance, Life insurance, Landlord insurance, Pet insurance, Medical insurance, Dental insurance, Business insurance please click here

  • Have something to say?
    We publish financial articles on this site if they fulfil our requirments. more>>