A policy that provides a tax-free monthly income if you are unable to work as a result of medium term sickness, incapacity or unemployment (normally 30 days or more).
Many people make the mistake of thinking that should they fall ill, have an accident or lose the ability to work, the State will step in and sort it all out. Wrong - the rules governing sickness benefit claims have changed dramatically.
Before April 1995, you could qualify for long-term sickness benefit if you were rendered incapable by illness or disability, of doing your own job of work. Now the rules state that you will only qualify for long-term sickness benefit if you cannot do any job of work. In other words, only if you are completely incapacitated will the State pay you any benefits. This means that, to all intents and purposes, there are currently no long-term sickness benefits in the
Even if you do qualify for getting long-term sickness benefit from the State - and it’s currently around only £66 a week - that benefit is now taxed.
This policy is similar to Permanent Health Insurance (PHI) with two main exceptions:
