A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Income Protection Insurance Jargon Buster
W
WAITING PERIOD
This is the period immediately after the Incident date that you have
to wait until any payment is made. As we operate a Back to Day 1 policy
this “waiting period” would be 31 days. If you are
unable to work at the end of this period, and your claim is agreed,
you will be eligible to claim for monthly benefits that would be backdated
to the first day of the incident.
WELCOME PACK
Within the Welcome Pack, that should arrive within 5/8 days following
application you will receive:
- Confirmation of the Direct Debit and date of first payment (see Direct Debit)
- Policy Schedule
- Key Facts Policy Summary
- Policy Terms and Conditions
- Transfer in Form if requested
Why would I use Income Protection Insurance
Giving consideration to the effect on your income and your expenses,
how do you think that you would cope with the change in your circumstances
if you lost your income or were too ill to work? For how long could
you cope? If a shortfall is likely, you should consider taking
out income protection insurance to protect your family and your lifestyle.
What are the difference between income protection insurance
and loan payment protection insurance and mortgage payment protections
insurance?
Income Protection Insurance:
Covers a percentage of your income and is paid directly to you and you
choose how to spend it. It can provide for any loan or mortgage
repayment, household bills such as rent, credit cards, school fees,
gas and electricity and removes the need for costly separate cover.
It requires just one policy for your whole working life and the insurance
premium will not increase according to age for the duration of the policy.
Mortgage Payment Protection Insurance (MPPI) and Loan Payment
Protection (PPI):
Covers only your loan or your mortgage repayment. It
rarely makes provision for your extra monthly outgoings although some
mortgage protection policies will additionally cover associated mortgage
costs. Generally you would require a new policy with each new mortgage
or loan you obtain so pricing and acceptance could then be affected
over time by your health and your age.
WORKING OUTSIDE THE UK
If you are working outside the UK, you will not receive any monthly
benefit for unemployment, incapacity or Return to Work (see Return to
work) unless you are:
- Working for the British Armed Forces or as a civil servant in a British Embassy or consulate; or
- Working for an employer that is a UK registered company who assigns you to work in the European Union on the same terms and conditions; or
- Working on a specific project for less than 30 days outside the UK and were actually outside the UK for less than 30 days.