How can clients pause their Income Protection Premiums if they take a break from work?
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Jason, our new IP product includes Sabbatical Cover (as well as Career Break) and is available to ALL policyholders (not just medical professionals). It enables customers to continue their cover while taking a break from work and provides full, own occupation protection during this time. (This is very different from our Career Break feature, which lets your customer reduce their maximum insured monthly benefit temporarily to as little as £250pm for up to 12 months, subject to our minimum premium of £5pm).
If employed customers (not self-employed) decide to take sabbatical breaks of up to 12 months from their job, they can continue to pay their premiums, and we’ll cover them as if they’re still working. They don’t need to tell us if they decide to take a sabbatical, but if they need to claim, we’ll need evidence of when their sabbatical started and that they had a guaranteed job to return to following their sabbatical. They can’t take a sabbatical in the first year of their policy, or the first year of starting a new job, but they can take multiple 12-month sabbaticals during the policy term but must return to work for at least 12-months before taking another sabbatical.
Hope this helps. Andy