A 5 year benefit period means that once your waiting period is over you will be paid your insured monthly benefit for a period of 5 years if you are off work due to illness or injury for this period.
- The premium is cheaper than longer benefit periods.
- If you are off work for longer than 5 years the benefits will not be paid once the benefit period has expired.
Why a 5 year benefit period is recommended
- You want a cheaper premium;
- You want to have some income protection insurance but cannot afford a longer benefit period;
- You only intend on working for the next 5 years, therefore only require a shorter period of time to be insured; and/or
- This is the maximum benefit that the insurer can offer due to your occupation.