Income Protection Flashcards
What does income protection do?
It pays a regular monthly benefit due to injury or illness, if the person is unable to work and suffers a loss of earnings. Tax fee. Generally a proportion of current salary.
What are the deferred periods
4,8,13,26,52,104 wks.
What is a limited payment term?
Limits the payment of benefit to 24 months- whether one 24 month claim or multiple smaller claims totalling 24 months.
No limits on number of claims as long as policyholder has returned to work for at least 6 months since the end of their last claim.
What is Full Cover To Term
No limit on the length of a claim or number of claims the policyholder can make.
Is Waiver Of Premium Standard with Income Protection ?
Yes.
How long is benefit payable for ?
Til policy ends
Incapacity ends
End of restricted benefit term
Policyholder dies
What is Back To Work Benefit?
Will pay a reduced proportion of benefit until back to work fully.
What is Hospital benefit ?
£100 per night each night the policyholder is hospitalised due to incapacity during the deferred period .
£100 per night provided the policy holder has spent at least 6 consecutive nights as a patient in hospital . ( a max of 90 nights during the policy term)
How does the hospital benefit help?
That money would replace paying for parking, taxis, food and primarily loss of earnings
What is a Benefit Guarantee
Guarantee helps provide peace of mind if the policy holders earnings have reduced since taking out the policy.
Eg. If benefit amount is up to £1500 per month we will guarantee the amount of benefit shown on the schedule.
If over £1,500 we will calculate the max benefit amount on the earnings in the 12 months before incapacity. ( if this means the benefit the policy holder is entitled to is equal to, or more than 90% of the amount shown on the schedule we will guarantee the amount.
If it’s less than 90% Aviva will pay the new calculated benefit amount of £1500 whichever is higher.
What is Waiver Of Premium?
If we accept the policy holders claim we’ll pay their premiums 13 weeks after they stopped working due to incapacity, or when their deferred period ends, whichever is sooner.
How many Physiotherapist sessions are included as standard?
3 in total, plus an online personalised programme of exercises, supported by videos/ emails with more guidance and follow ups to check on progress.
What is trauma benefit?
One payment of 6 times the monthly benefit of £40k, whichever is lower if the policy holder suffers one of 6 traumatic events…
Events could be:
Amputation of a limb
Total paralysis
Extreme cases of Type 2 diabetes
Explain about about the NHS Sick Pay Guarantee..
For people who have recently started working for the NHS ( whilst building up their sick pay - Doctors/Surgeons/midwife’s/nurses only. )
Has to be a deferred period of 52 weeks and we’ll automatically begin your income protection payments as soon as your NHS sick pay stops or reduces.
What are optional benefits under Income Protection
Fracture cover- only 1 claim can be made per 12 month period.
Global treatments
Increasing cover
