Permanent Health Insurance
Permanent health insurance will pay you a monthly tax free income if you are unable to work because of illness or injury.
ActiveQuote offers permanent health insurance quotes from all the leading UK insurers. By using our comparison system you can compare permanent health cover plans online and buy your chosen policy instantly.
What is permanent health insurance?
Permanent health insurance will replace a maximum percentage of your monthly income if you cannot work because of an accident or an illness, potentially up until retirement age.
Permanent health insurance or income protection?
Permanent health insurance is an older term for what is now known as long-term income protection. The only difference between the policies is in the name. Whilst you may find some companies still referring to the product as permanent health insurance, it is more commonly called income protection.
Permanent health insurance or private medical insurance?
It is easy to get confused between permanent health insurance and private medical insurance, but they are two very different products. Private medical insurance (or simply “health insurance”) will cover the cost of private healthcare. In contrast, permanent health insurance will pay you a tax free monthly benefit if you are unable to work because of accident or an illness.
Why is permanent health cover important?
"The one protection policy every working adult in the UK should consider is the very one most of us don't have - Income Protection." Which? Money, 2012.
If you were unable to work because of an accident or sickness, how would you meet your current monthly outgoings? If you do not have savings or a partner’s income to rely on, you may need to rely on government benefits called Employment and Support Allowance (ESA). ESA will only pay out up to £105.05, and this may not be enough to maintain your current lifestyle.
Permanent health cover will give you the financial means to maintain your current lifestyle for as long as it takes for you to recover.
How does it work?
There are many different things to consider when taking out permanent health insurance, including:
- Your benefit amount: This is the amount of money you wish to be paid by your permanent health cover. Some policies will allow you to cover up to 70% of your income, although 50-60% is more common.
- Your benefit period: This is the maximum length of time that you will be paid by your permanent health insurance provider. With permanent health insurance, it is possible to be covered up until retirement age- this way you will be paid up until you return to work or when you retire, whichever is sooner.
- Your waiting period: This is the amount of time between you are unable to work and when your permanent health cover policy starts paying out.
For more information on this product, take a look at our page on long-term income protection.
Compare permanent health insurance quotes
In the UK there are a number of permanent health insurance providers, and it is often wise to compare cover prices and options from all of them. Rather than visiting each insurer individually, ActiveQuote helps compare permanent health cover plans from all the leading insurers. Our online comparison system allows you to view a range of quotes and buy your chosen permanent health insurance policy instantly.
When purchasing permanent health cover it is often wise to get advice from an independent expert. ActiveQuote is an FSA registered broker, so our consultants will be able to help you arrange your cover as well as finding you the best prices.