Permanent Health Insurance

PHI will pay an income to the insured when either accident or illness prevents them from doing their normal job. The payment is typically a percentage of the policyholders' income, sometimes as high as 65%.

The cost of PHI is linked to the type of employment. The premiums will be less for individuals who have low risk occupations such as civil servants. Individuals in the most risky occupations will not be able to take out PHI cover. Other factors such as age, past medical history, sex, smoker status and deferred period will affect the premium rate.

The payment of benefits starts after an initial deferred period, the minimum deferred period is 4 weeks, but they do range up to 104 weeks. The benefit is paid until the policy holder returns to work, retires or dies, whichever event occurs first.

The benefit paid from a permanent health insurance policy is tax-free, though there is no tax relief on the monthly premiums.

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