OFFSHORE WORKERS - LIFE INSURANCE PROTECTION - SPECIALIST BROKERS

If you are an offshore worker – as you are no doubt aware, Insurers do consider this to be higher risk for applications for - Life Insurance, Critical Illness & PHI Income Protection.

However, for offshore workers, the medical health aspect of your life insurance application should be less of a concern as you must be physically healthy to do your job role & must also pass regular occupational medicals to work offshore.

Uk Insurance providers are interested in a number of factors when it comes to underwriting those who work specifically offshore in the Oil & Gas Industry etc;. This will include information such as:

• Geographical Location – eg; North Sea, UAE, Qatar, Oman, Thailand, Indonesia, Vietnam, Malaysia, Nigeria etc;
• Offshore Drilling Location – Offshore Oil or Gas Rigs – do you live there also whilst working or the mainland in camp
• Occupation – Risk will be based upon job role ie; divers, rig technicians, scaffolders, crane operators, rats, engineers or lower risk supervisory work
• Work Pattern - For example "4 weeks on" & then "4 weeks off" back in UK
• Occupational work duties - Working at heights, manual work, working underwater
• Equipment / Machinery Used: Use of explosives, heavy mechanical machinery  
• Forms of transport – How you get to typical offshore landing destinations, helicopter travel
• Tax Status: Classified still as UK Based or classed as Expatriate
• UK Based: You will need to be in UK at the time you take out protection cover policy – a medical maybe also needed especially if you visit higher risk countries

We deal with a Range of Insurers currently able to offer Offshore Workers terms for Life Insurance, Critical Illness Cover and Income Protection.

Offshore Workers - Life Insurance Quotes - Broker Advice

Offshore Workers - Life Insurance Cover Quotes - Summary Article 2020

PHI Income Protection Cover ~ Offshore ~ Typical Key Features 

• Designed to pay out Income to cover lost salary/wages not lump sum on accident or sickness
• Usually has a waiting or deferred / waiting period from 1/4/8/13/26/52 weeks 
• PHI benefits are currently paid out tax free on claim until you return to work or plan end date
• Income Protection PHI wage cover can usually run upto age 65 if self employed contractor - although state pension ages are maybe beyond this to age 67
• Income Insurance Benefits may be level or inflation linked 
• Medical evidence is required to underwrite before any terms offered
• Premiums may be none-reviewable, annually/5 yearly reviewable or age costed
• Budget PHI salary cover may run upto age 65/70 but payout for only 12/24/60 months upon any claim
• Cover may be based on maximum of say 50% to 65% of your gross earnings
• Waiver of Premium (where the Insurer waives/protects & covers your premiums after a deferred period of 4/8/13/26 weeks due to sickness or accident) so you do not have to pay them in claim
• Given higher risks of some Offshore work - there maybe exclusions applied

For more information on this & costs talk to a professional broker here

Income Protection Insurance for Offshore Workers

If you can't work because of illness or disability, an income protection plan aims to pays out a tax-free income.

"PHI Income Insurance" tries to put you back into the same situation you were in before you were ill. But it does not allow you to be better off sick than well. So the maximum amount of income you can replace is the after-tax earnings you have lost, less an adjustment for any Uk State benefits you can possibly claim. 

This means that dependant on the Insurer - 50%/65% of your gross income but then paid out tax free. If self employed then this is usually based on last 12 months annual net profits. Note that the old PHI Insurance rules used to be based on 75% of income but then taxable (so beware of swopping these old plans without advice). So check what you maybe entitled to based on your profits at the last tax self assessment.

Why not have Critical Illness Insurance Cover being a Offshore Worker - instead of Income Insurance ?

Critical illness cover (CIC) - pays out a tax-free lump sum if you are diagnosed with a life-threatening condition for example some forms of cancer, heart attack, stroke, diabetes etc; as specified and listed in the policy - is a possible cheaper and simpler alternative to Income Insurance.

But there are lots of common situations when CIC would not pay out - for example, if you had back problems or maybe a stress-related illness. Additionally, not all occurrences of the critical illnesses listed are covered, for example some lesser forms / early stages of cancer maybe not covered. Ideally you should have both plans if your budget allows this.

Given higher risks of some Offshore work - there maybe exclusions applied. For more information on this & costs talk to a professional broker here.

Is PHI Income Insurance for Offshore Workers - the same as Accident & Sickness Cover ?

Accident, Sickness &/or Unemployment insurance (ASU), can also be referred to confusingly as Income Protection, if doing research online, although it is a different product. ASU cover will provide you with an income to meet your outgoings if you are off work sick, have an accident or are made redundant. It pays out a monthly benefit to cover your mortgage/loan and other related costs but for a limited period.

You may choose the amount of benefit you would like to receive - although there are some limits on the maximum amount. The premium will be a percentage of the amount of monthly benefit you would like to receive. NOTE: Benefits are usually payable for a maximum of 12 or 24 months - unlike Income Insurance PHI which may pay up to when you retire usually age 65.

Some policies will also allow you to choose whether you want to receive benefits for accident and sickness only, unemployment only or all three. Most policies will also have a 'deferment period' usually 30 days. This is the period of time you will have to wait after losing your source of income until you may claim the policy benefit.

Given higher risks of some Offshore work - there maybe exclusions applied. For more information on this & costs talk to a professional broker here.

Life Insurance Quotes
Specialist Cover for Offshore Workers

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