Income Protection (FAQ)
Do I need income protection insurance?
The answer to this question depends on whether you want to protect yourself from income loss.
For many people, income protection insurance is an indispensable product, and it’s especially beneficial for self-employed people and people in business.
Income protection insurance can provide a regular source of money as an income replacement if you are temporarily or permanently incapacitated to work.
How does income protection insurance work?
Most income protection insurance contains various insurance coverages to protect against certain circumstances.
Income protection insurance in Cyprus typically includes Temporary Disability Insurance, Total Permanent Disability Insurance, and Permanent Partial Disability Insurance.
It provides coverage for certain circumstances, such as the temporary or permanent inability to work and the ability to work partially, i.e., at an impaired standard.
What does income protection insurance include?
In addition to the standard coverages, additional coverages are usually offered as part of an income protection insurance policy.
Additional coverages include surgical and hospital cash benefits, which we will outline below.
Suppose you must have surgery as an in-patient while hospitalised by an injury or illness. Your insurer will pay your chosen lump-sum amount in respect of the type of surgery performed.
For example, if the lump sum is €3,000, you will be paid €3,000 every time you have surgery, regardless of whether you have medical insurance.
Suppose you are hospitalised as an in-patient, whether you had an operation or not. In that case, a monthly benefit will be paid (24-month period max) for each month you are hospitalised.
For example, if the lump sum is €2,000, in addition to the temporary disability insurance benefit, you will be paid an additional €2,000 for each month you are hospitalised.
The benefit might include waiting (or deferred) periods.
What is the waiting period?
After signing your contract, the waiting, or deferred, period is how long you must wait before payments start.
Common waiting periods are between one and six months, or 4, 13, 26 weeks, or one year, and the longer you hold off before making a claim, the lower your premiums will be.
What does income protection insurance exclude?
Income protection insurance is a high-cover product but does not include accidental death coverage.
For accidental death coverage, customers are recommended to choose personal accident insurance.
You can find out more about accidental death coverage on our blog.
How do I get income protection insurance?
You must disclose your medical history to your insurance provider in advance to get income protection insurance, as it will be used to determine how much coverage you need and your premium cost.
Exclusions may be added to your contract if you have pre-existing conditions, so that should also be disclosed before signing the contract.
It’s important to present all information accurately so you will be protected in case of a claim. If you have failed to mention anything, your policy will not pay out.
Our income protection insurance plans are tax deductible. Pitsas Insurances has created affordable products to cover all needs.
To read more about income protection insurance in Cyprus, see our blog here.
For a free income protection insurance quote, see here.
Use our contact form if you have any more questions, or send your questions to: [email protected].
Pitsas Insurances Team