Other protection policies in London and the UK- income protection insurance, critical illness insurance, accident, sickness and unemployment insurance

Income protection insurance plan

Income protection policies provide an income that starts after a deferred period of your choice, should you be unable to work, due to sickness or injury. Once the income protection policy is accepted by the insurer, the premiums cannot be increased or claims refused, regardless of the number of legitimate claims.

Income protection insurance premiums

Income protection premium rates are based on occupation, age, health, level of cover, term, deferred period, gender and smoking status. Some insurance companies have introduced reviewable premiums that increase depending on the overall claims experience.

There are many different types of income protection policies available. Great care must be taken over examination of the circumstances in which the insurance companies will pay out.
If as a result of sickness or injury you cannot carry on your normal line of work, the insurer may not admit the claim, unless you are incapable of performing any paid employment.

Sickness and accident insurance plans

These plans are general insurance products offered on an annual basis.

This implies that an insurer has the right to refuse to renew or can increase premiums in the event of a change of circumstances or adverse claims experience. A personal accident and sickness insurance policy will offer a lump sum benefit during an accident, in the event of: death, loss of limbs, irrevocable loss of sight in one or both eyes, permanent total disablement.

Generally, the benefits from a personal accident and sickness insurance policy are not taxable; therefore lump sum benefits are paid tax free.

Private Medical Insurance Plan

Private medical insurance policies pay for the cost of medical treatment, regardless of whether the policyholder is an in-patient or out-patient, and provided they require health care.

There are many different types of private medical insurance policies available. Some private medical insurance policies will provide cash payment if NHS treatment is received. The cost is based on age, the number of family members requiring cover and the hospital band required.

Hospital bands depend on the area and facilities available: for example, central London hospitals are the most highly graded.

Premiums are reviewed annually and increase with age and overall claims experience.

Many private medical insurers do not seek medical evidence on new applicants. They simply impose a moratorium that they will not cover any treatment arising from a pre-existing condition for a certain time period.

Generally, the benefits from a private medical insurance policy are not taxable.