Health Cover Advice

What would you do if you could not work due to accident or ill health? If you had a reduced income, how would you pay your bills?

What if you fell from a ladder and injured your back and were unable to go to work on Monday? How generous would your employer be or, worse still, what protection would you have if you were self employed?

We all hope it will never happen but sadly, thousands of people are incapacitated unexpectedly who thought that it would never happen to them.

Health cover is provided by a number of different protection products which provide for specific needs.


Permanent Health Insurance (PHI) is a policy that pays out regular sums of money to the insured after a specified period during disability through sickness or accident and injury. The benefit is payable until the policy holder returns to work, dies, or the policy term expires, whichever is earlier. Such a policy is used to replace a percentage of full income and not just the monthly mortgage repayment. PHI is not an accident, sickness and unemployment and insurance policy which usually only give cover for up to two years. PHI pays an income until you return to work or until normal retirement age. PHI does not cover unemployment. The amount paid out is linked to your overall level of income. Premiums are calculated on your occupation and benefit required (you can normally specify up to 65% of your gross salary).


This is insurance which covers the insured against specified critical illnesses such as cancer, heart attack and multiple sclerosis etc. In the event that the insured contracts one of the specified illnesses, the insurers would pay a lump sum rather than an income as in the case of permanent health insurance.

The level of cover available and how much it will cost depends on the amount of cover you request and the period over which you want the cover to last and other factors such as your medical history and occupation.


Family Income Benefit is a type of term assurance in which, following the death of the life assured, pays instalments, rather than a lump sum, to the beneficiary for the remainder of the policy term. If the life assured lives to the end of the term, no benefit is payable. Rather than providing a lump sum should you die, family income benefit provides a regular, tax-free, monthly income for you and your dependants - from the time of the claim to the end of the plan term. Family income benefit is particularly attractive to those who like to know they have a regular monthly income and would rather not have to worry about complex investment decisions to make the most of a lump sum payout.

The guidance and/or advice contained within this website are subject to the UK regulatory regime, and are therefore targeted at consumers based in the UK.
Lawrence Clarke Ltd is a member of Best Practice IFA Group Ltd which is authorised and regulated by the Financial Conduct Authority. The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit Details can be found at under reference number 131460. Lawrence Clarke Ltd is registered in England, no. 3679668.