Income Protection - Plan Details
What is Income Protection?
Income Protection offers you financial security for yourself and your family if you are unfortunate enough to be out of work because of an illness or accident and suffer a loss of earnings as a result.
What type of disability is covered?
Your plan will protect your income against:
- Any illness
- Any injury
- Any disability or
- Any accident resulting in you being unable to work for longer than your deferred period.
Deferred Period/Waiting Time
The Income Protection plan will provide you with an alternate source of income. This income is a weekly benefit payable after a deferred period of either 13, 26 or 52 weeks. The deferred period is the length of time between when you were last at work due to the illness and when you start receiving an income benefit.
We will continue to cover you if you change jobs, regardless of what your new job entails. If you are made redundant, you may continue with the plan while you are looking for another job, however, you cannot claim benefit while unemployed.
Waiver of Premium
You do not have to continue paying premiums while receiving an income benefit. Instead we will pay your premiums for you and when your claim finishes you will restart paying premiums.
Guaranteed Increase Option
Our Guaranteed Increase option allows you to increase your income benefit by 20% of your original income benefit without having to provide new evidence of health. This offer will be made to you every 3 years up to a maximum of 100% of your original income benefit. However, if you decline this option twice, we will not offer it to you again. This option is not available within five years of the policy end date.
We will pay your benefit once you are in the European Union. However, if you claim benefit and are working outside the European Union, then we will pay your benefit for 13 weeks in any 52 week period (to a total of 39 weeks).
You can index your income benefit by 3% each year. This means that both your premium and benefit will increase by 3% each year of your plan. This, in effect, will help ensure that your benefit automatically stays in line with any salary increases.
You can alternatively select escalation. This feature means that your income benefit will escalate in payment by either 3% or 5% p.a. from the anniversary of the expiry of the deferred period. Your premiums remain level under this option.
The guaranteed premium option will ensure that your premium will not change during the term of the plan if your chosen benefits remain the same. This allows you to know in advance how much your premiums will be over the term of the plan. There will be no change to this even if you make a claim.
The reviewable premium option will guarantee your premiums stay constant for the first 5 years of the plan. We will review the premium every 5 years thereafter. In the review we will take into account claims experience over the preceding years and changes in economic conditions. We will also take into account any medical breakthroughs and the discovery of any new diseases. If it is necessary to change the premium, we will offer you the choice of a change in either premium or benefits.