If you are unable to work due to a medical condition, disability income protection insurance kicks in after a waiting period; this can be a number of weeks and/or after your sick pay ends. Generally the longer you wait the lower the monthly premiums. You continue to receive the replacement income until you recover and can return to work or until the policy's benefit period ends.
The benefit period varies depending on the policy and can range from a few years to until retirement age.
The benefit amount, waiting period, and duration of payments can all be varied and need to be based on your specific needs and circumstances. For example, spouses earning ability, debt repayments, extended family support.
There are many ways to structure disability products and a combination of mortgage and income policies to best suit your circumstances.
Disability policies are quite complex and you need to understand what you’re covered for so you can make a decision about whether it’s right for your situation. These policies often sit alongside trauma insurance
policies, however they do work differently and have a different purpose.