Chapter 6- Income Protection Flashcards
How long do standard IP policies usually last
Til Spa
How long is the usual benefit period on limited term cover
1-5 years
What type of ip is designed mostly for self employed
Day one or back to day one
What are the 3 most common incapacity definitions
Unable to perform own occupation
Unable to follow any occupation one is suited to
Unable to follow any occupation
What is the usual ip deferred period
13 or 26 years
What is rehabilitation benefit
A smaller benefit if return to work but earn less eg working part time
What is proportionate benefit
Similar to rehab benefit but if they take a different role than they had previously
What is the usual benefit limit for ip
50-60% average gross earnings
Is personal ip benefit taxed
No
Generally, do insurers need to be notified in a change of occupation.
No
How do reviewable premiums work
Reviewed in light of insurers claims experience
When should insurer be notified of illness
Straight away
How is the deferred period treated in linked periods of illness
Waived
What are the 5 key considerations when recommending an ip policy
Deferred period Incapacity definition Benefit level Indexation or increases Guaranteed or reviewable premiums
