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Suitable for income protection |
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Single male age 22 |
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Single female age 21 |
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Single parent age 30-1 child |
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Married couple both 32 no children |
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Married couple in their 30's with 2 children aged 5
& 8 |
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Married couple in their 40's with 2 children at
school/university |
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Married couple in their 50's |
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The aim of this class of insurance is to provide a
fixed amount or a proportion of salary to someone who is prevented from
carrying out their work because of disability, sickness or accident which
is of a long term nature. A person would require to be absent for a set
period (usually between three to 12 months) before the payment commences. |
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Individuals can effect this class of business but
mostly it is arranged by an employer for his employees. |
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Many employers arrange to continue paying salaries
during months of illness for a certain period. At the end of this period
some employers may wish to discharge their obligations to make further
payments although still providing for the unfortunate employee. By
effecting a policy, often running in conjunction with the retirement
benefit scheme, plus the State single person's sickness benefit does not
exceed 75 per cent of earnings. |
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Once started the benefit could continue until the
member reached retirement age. For an extra premium additional payments
can be made by the insurance company to the employer to cover the
contributions that he and his and his employee would have paid to the
retirement benefit scheme. |
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The premiums for this type of insurance are relatively
small and is not normal for the employee to contribute towards the
benefit. |
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Although it is often linked to a retirement benefit
scheme it is a contract between the employer (as a distinct from the
trustees) and the insurance company. |
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There are some restrictions and no benefit would
normally be paid as a result of: |