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11 Income protection insurance 11.1 Definition and use to meet customers needs The contract enables individuals to provide an income for themselves and their dependants in the event of the insured risk occurring. The most common insured risk is longterm sickness or incapacity due to accident or illness. The policy literature must define what constitutes sufficient incapacity to be able to claim. This usually means unable to work in some sense, although there is scope for considerable variation here. For example, if a brain surgeon is no longer capable of brain surgery but could do light manual work, are they unable to work and hence able to claim The policy must make it clear whether the claim is dependent on being unable to follow any occupation, or the individuals own occupation, or some other definition. These contracts typically terminate at retirement age, and do not provide benefits for the first period of any claim. In the first period of a claim it is assumed that the insured will have other resources, for example a company sick pay scheme or State benefit provision. Benefits might be payable until normal retirement age or for some specified shorter period. Individual contracts are usually regular premium. 11.2 Existence of a group version The group equivalent can be used by an employer to provide a sickpay scheme for employees.