Income Protection Insurance - What is defined as long-term sickness or injury?

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What is Long-term Sickness or Injury?

As insurance companies have different definitions of what is considered a long-term illness, the general rule is that you must typically demonstrate that you are unable to follow your usual occupation as a result of sickness or accident in order to be eligible for the income protection insurance policy benefits.

Unable to work

But there are some income protection insurance policies that should be avoided as they will only payout benefits if you are unable to take part in any occupation.

These policies mean that insurance companies are able to make huge profits at your expense as making a valid income insurance claim is near impossible.

Reduced benefits

It is also important to note that your income protection insurance company will probably pay you a reduced benefit if you feel that you are able to return to work on a part-time basis or take a lower-paid job.

This can be of great help as some income is better than none. If you return to your normal occupation you will receive a rehabilitation or partial benefit, or if you find alternative work you will receive what is called a proportionate benefit.

Returning to work

Once you feel you are well enough to fully return to work you must contact your income protection insurer who will then cease benefit payments.