Permanent Health Insurance provides cover in the event that you are to work, and therefore to earn, due to illness or injury.

A lot of people suffer financial hardship as a result and the state offers only minimal help for those eligible for income support. Eligibility for incapacity benefit is strict. After 28 weeks of illness claimants must undergo a test checking their ability to do some form of work. Even if they qualify, benefits are very low and they are taxable.

Permanent Health Insurance pays a regular amount to protect your standard of living if you suffer long-term sickness or injury. Benefit usually starts after an initial waiting period of four, 13, 26 or 52 weeks and it is payable until you return to work, die or the policy term expires, whichever happens first.

It's called permanent because the insurer may not cancel the policy no matter how often you claim for benefit, although policies usually expire when the policyholder reaches 60 or 65. Insurance companies will not normally write new policies for applicants within five years of these age limits.

If you are looking for permanent health insurance it's crucial you get the best policy to suit both your budget and your needs. In these days where the concept of a job for life with all its associated benefits has vanished it is now more important than ever to insure against risks.

The premium cost will depend on the extent of the illnesses covered, the age of the policyholder and period of time that elapses between when the insured becomes ill and the deferred period.

There is considerable choice between different covers offered by different insurers. The key is to choose a balance between the cover you need versus the cost of premium.