What is the range of deferred periods for income protection insurance?

The range for deferred periods in income protection insurance is mostly recognized to span from 4 weeks to 2 years. This deferral, sometimes referred to as an elimination period, is the time that must pass after an individual becomes unable to work due to illness or injury, before they begin receiving the benefit payments.

A typical deferred period of 4 weeks provides a relatively short waiting time before benefits start, which may cater to those who wish for a quicker payout option. On the other hand, a longer deferred period, such as up to 2 years, allows for potentially lower premiums, making it a suitable choice for individuals who can absorb a longer wait before financial support becomes available. This wide range allows policyholders to choose an option that aligns with their financial situation and comfort level regarding income loss.

The other ranges presented in the options do not accurately reflect the standard practices found within income protection insurance schemes. They either start too soon or extend longer than is common in practice, demonstrating that the range of 4 weeks to 2 years is the most aligned with current insurance policies.