Q: I need to protect my income against ill health. PHI or Critical Illness?

A: Permanent Health Insurance provides an income in the event of long term inability to work. It provides a maximum of 75% of your normal income. You can be covered for as long as you are incapacitated, until retirement age if necessary.
Critical Illness pays out a lump sum on the diagnosis of particular conditions such as heart attack, stroke, cancer etc.  Which is best will depend upon your circumstances and what you want to achieve.

PHI provides the most comprehensive cover and in most cases should be in place first. However, if you would like the security of having your mortgage cleared for example, then critical illness with a smaller PHI cover maybe appropriate.

Q: I am a relatively new business and would like to provide some benefit for my staff but cash is at a premium. What can I do?

A: Death in Service cover is relatively cheap and is arguably the first protection you should provide. Much will depend upon the size and age distribution of your workforce, but a sum insured of 2x salary should be available without their having to provide any medical evidence.

A cheaper option is personal accident cover. As its name implies, there is no cover for sickness. However, lump sums are paid for a range of injuries and death wherever and whenever they occur. This will be very valuable to an individual who has to stop work for a while and may, if the accident occurs at work, head off a damaging Employers Liability claim.