What is a Split Deferred Period?
Question asked by Hazel Cross
What’s the average claims length for an Income Protection policy? Do people usually claim for a long time or is there a maximum payout length?
Liverpool Victoria (LV) has published claims data showing that their average claim length for Income Protection in 2012 was 7 years.
Meanwhile, more up to date figures from Aviva reveal that the average claim length for all claims being paid in 2016 was 3 years and 16 weeks.
As you can see, the average claim length on Income Protection policies is measured in years, not weeks.
Short term plans pay out for 12 or 24 months, whereas long-term plans pay out until you return to work or until the policy expires. Many people on long-term plans set the policy to expire at retirement age or to coincide with the end of their mortgage.
Understandably, the longer the payment period the higher the monthly premium so you would need to take your budget into account.
We can provide you with a quote online or you can speak to one of our advisers on 02084327333 to run through your options.