Income Protection Insurance Glossary
There are many industry terms associated with income protection insurance which can sometimes be confusing. To help you understand more about buying income protection insurance, ActiveQuote has provided an income protection glossary to explain the key terms surrounding the product.
|Activities of daily living:
||The policyholder is considered incapacitated if they are unable, following illness or accident to perform a number of pre-defined activities of daily living such as dressing or washing.
||The policyholder is considered incapacitated if they are unable, following illness or accident to perform any occupation at all.
||Accident, Sickness and Unemployment Insurance will pay you a monthly benefit if you are unable to work through accidental injury, illness or involuntary unemployment.
||The amount that will be paid out by a policy.
||The length of time that your benefit will be paid for.
||A notification to your income protection insurer requesting payment of an amount due under the terms of the policy.
||Your waiting period is the length of time after making a claim that the policy will begin to pay out.
||Employment Support Allowance is provided by the government to financially aid people who are incapacitated.
||Inability to work due to illness, injury or disability.
|Income Protection Insurance:
||Income Protection Insurance will pay you a monthly benefit if you are unable to work through accidental injury or illness.
||Mortgage Payment Protection Insurance (MPPI) is a type of short term Income Protection that will meet your mortgage repayments if you cannot work through accident, sickness or unemployment.
||The category into which an insurer places an occupation depending on the risks involved with it.
||The policyholder is considered incapacitated if they are unable to perform their own occupation and are not working in another job.
|Permanent Health Insurance:
||An older term for long-term income protection insurance.
||The period for which your income protection policy provides cover.
||The policyholder is considered incapacitated if they are unable to perform an occupation suitable to them given their training and education.
If you still have questions about income protection insurance, compare quotes online now, or call one of our advisors for free on 0800 862 0373.