An income protection plan is designed to provide you with an income if you become ill or have an accident and your doctor medically certifies you are unable to work.

Any Income Protection Plan is not “static”. Rather, some of the financial parameters may change as a result of changes in the circumstances of the policy holder or the factors that determine the level of premium and lump sum payments. It’s important to understand these at the outset to avoid future surprises.

The Policy Holders Obligations

In order for a policy to be valid, you (the policy holder) must make regular payments as specified in your schedule up to retirement age. This is a long term commitment and penalties apply if a policy is cancelled early.

It is also your responsibility to provide all necessary medical and non-medical information during the application stage and notify your provider of any chance in circumstances. Claims must be made within the required timeframe and must be accompanies by all supporting documentation such as medical certificates.

Last but not least it is your responsibility to review their level of cover from time to time. It’s important not to be over or under insured.

Limits of The Society’s Responsibilities

If you stop paying your subscriptions (premiums), your entitlement to benefit is at risk. The amount of any cash lump sum paid on your retirement is not guaranteed. In our case the precise amount will depend on apportionment and declared bonuses during membership. If a subscription is cancelled early, penalties may be applied.

The tax status of benefits and lump sums is obviously out with the Society’s control. These are currently tax free but may not be in the future. You should also be aware that subscription rates are not fixed but may alter according to the demand of claim costs and expenses. These are set according to historical factors. When your circumstances change it is your responsibility to review the appropriateness of the level of cover provided.