Income Protection Insurance (PHI)

Often known as Permanent Income Protection, Permanent Health Insurance or just plain PHI.

It provides a replacement income if you are unable to work as a result of illness or injury.

What would you do if you were unable to work long-term due to accident or illness? Your employer would pay you for a while, but then you would need to look to savings, pensions if any, social security, and the generosity of others. 

Income Protection insurance is designed to pay you a replacement income if you are unable to work. Industry rules dictate you may not insure all of your income, but may insure most of it (two-thirds to three-quarters is typical). 

If you are employed and have group arrangements available to you, then in most cases that will be the choice to follow. Group schemes carry valuable premium discounts through economies of scale, and are often non-contributory for the employee.

For those whose employers do not provide group arrangements, or the self-employed,  then individual policies are available.