What is an income protection deferred period, how does it…
A deferred period (often referred to as a deferral period) usually refers to the length of time from making a claim on your insurance policy, until the point at which a pay out is made.
Whilst typically used in conjunction with income protection, other forms of insurance incorporate a deferral period. The type of insurance will vary the definition.
Keep reading for a comprehensive understanding…
A deferred period is most commonly associated with income protection and refers to the length of time you're unable to work before your first pay out will be received.
This is often a minimum of 4 weeks but can be as long as 12 months or more depending on the provider.
Income protection provides you with protection to replace your lost income if you were no longer able to work.
Your deferral period won’t begin until your provider has been informed, and therefore, it's essential to make them aware of your incapacity to work as soon as possible.
With regards to life insurance, a deferred application and referred application are often used interchangeably.
If your application is deferred/referred by an insurer, it generally means that the application has been put on hold whilst more information is gathered.
This could involve accessing your medical records so that your risk can be fully assessed, awaiting recovery from a recent surgery or medical investigation, or if you have recently been diagnosed with an illness and time is needed to determine how the condition will progress.
At Reassured, we compare quotes from market-leading providers and can suggest who is most likely to accept your application.
We work with specialist insurers to help our customers who have previously been declined.
Simply get in touch today for your free quotes.
Many life insurance policies come with the option to add a waiver of premium.
This means that if you're unable to work for a specified period of time, your cover won't lapse due to missed premium payments.
This option tends to bring with it a deferred period, meaning that you must be unable to work for a specified length of time before the waiver of premium benefit comes into play.
The deferred period associated with this option will vary depending on your policy and therefore, it's essential to review your individual terms and conditions.
If interested in arranging the waiver of premium benefit, please mention this to our highly trained staff during your application.
The deferred period and waiting period are often confused.
Whilst the deferred period refers to the length of time you must be incapacitated before pay outs will begin, the waiting period tends to be used more frequently in conjunction with life insurance; particularly over 50s plans.
When arranging an over 50s plan, your policy will likely incorporate a waiting period between 12-24 months depending on the provider.
No medical information is required to be accepted on an over 50s plan.
So, to manage the level of risk to the insurer, before a full pay out can be made as a result of death, you'll be required to survive a minimum of 12-24 months.
At Reassured, we can arrange over 50s plans from as little as 20p-a-day + , simply get in touch for your free quote.
As opposed to protecting your salary, mortgage payment protection insurance (MPPI) will cover the costs of your mortgage repayments should you no longer be able to afford them.
This may be as a result of falling ill or becoming incapacitated and unable to work or losing your job.
However, as with income protection, the deferral period refers to the length of time you must be out of work before payments will commence.
In this instance, this is also often referred to as the excess period and often requires being out of work for at least 30 days.
Unfortunately, we don't arrange mortgage payment protection insurance. However, income protection insurance can be arranged through Reassured Advice.
At Reassured, we can provide you with all of the information you need to make an informed decision, whether this be our cheapest quote or the shortest waiting period.
We have helped protect over 1,000,000 families across the UK.
Simply get in touch today for your free, no-obligation quotes.
What is an income protection deferred period, how does it…
Have you ever wondered what impaired risk means with…
What do insurers deem as high risk and how will this impact…
What's most important to you when it comes to arranging…
According to internal data from Reassured, the average cost…
Over 50 life insurance vs funeral plan, what’s best for you…
How can mortgage life insurance cover protect your loved…
Securing life insurance doesn’t have to be confusing. Read…
Compare level term vs decreasing term life insurance to…
Establish how much life insurance cover you need by reading…
Research indicates that there’s a sizeable gap between…
What’s the difference between life assurance and life…
Yes very pleased with my choice very helpful easy to understand and very pleasant transaction all good!Mrs M Rushworth
Very professional and reassuring. Life insurance sorted in about 10 minutes.Stephen Davies
very courteous and friendly. Polite professional and empathic.Stedroy Fenton
Another happy customer I am. They are very professional and kind. Fully communicative. I recommend.Piotr Stepien
Really attentive during the call, good clear guidance throughout. Well done.Michael Reynolds
Amazing service quick fast and easy and Joey was a star on the phone really help me thanks.Sera Woolley
I made the right choice and now I feel relieved that I did.glyn
Really genuine kind and compassionate team with great knowledge and friendly approach highly recommend them!Katelia Merritt
I must say Jake took me through every step and was brilliant, recommend them anytime.Allan Green
Very happy and everything explained well, so glad a took the time to take the call, normally I would say I'm busy. But compared to other company's we save so much more money.Jenny Berry