Advice needed on Personal Accident Insurance

babyblue2

please?

Husband and I have a building surveying firm. I would like to know if Personal Accident insurance is what I require. I would like to insurance my husband if he has any kind of accident (car crash, injury etc) whereby he is unable to work (he is the only fee earner). We draw a sensible monthly wage and at the end of the tax year we then have a lump sum which we put in ISA's etc to pay off our mortgage next year. I do not think I need income protection (unless someone tells me otherwise) because the only debts we will have come next April are utility bills. Does Personal Accident Insurance work this way? Would it cover just our monthly wage or would it cover the profit we have made at the end of the tax year too? Any advice would be appreciated. Thank you.

babyblue2

I should've said, we already have life insurance (not critical illness though).

dunstonh

The generic initials for this product are very apt. PAP

However, you are looking at the wrong product. You shouldnt be looking at personal accident protection but permanent health insurance.

You can buy these via a local IFA.

babyblue2

Thank you for that, i'll have a research. I find it all a bit mind boggling really but will try and make sense of what I discover. Thanks again

babyblue2

Just another question. When a website says that PHI pays you 50%-60% of your gross monthly earnings, do they pay on the profit made at the end of the year. We withdraw say £3k each month (by choice) but then are left with say £30k profit at the end of the tax year. Is this profit taken into consideration, or is it just the amount we choose to pay ourselves each month?

dunstonh

You select a sum insured which would equate to the average. it doesnt matter if its monthly or quarterly or yearly. Its the annual figure that matters. As long as the accounts show that figure to be consistent then its not a problem.

babyblue2

Thank you