Long Term Disability Income (Permanent Health Insurance)
The ability to earn an income is probably the biggest asset an individual has. Take that asset away and then most personal aspirations will fall apart. Most contracts of employment allow for full pay for up to three months, and in some cases up to six months. From then on it is negotiable, and generally the employee will be left with a major financial gap in their level of income. This is where Long Term Disability Income can help.
Long Term Disability Income provides an income for an employee who is unable to work due to long term illness. A level or increasing benefit is paid until the employee is (a) fit enough to return to work; (b) reaches normal retirement age; or (c) dies prematurely.
The cost of the cover is dependent on the waiting period before benefits start, the amount of benefit required, and the age of the employee. The cost of such cover is an allowable business expense for the Company, and is not treated as a benefit in kind in the hands of the employee.