Simon has been working as a dentist in a small surgery for eight years. Five years ago he took out an Income Protection policy to protect his income in case sickness or injury prevented him from working.
While cycling one weekend, Simon was knocked off his bike, resulting in a severe neck injury. His doctor told him it would be at least three months before he could work to full capacity again.
At the time he took out the policy, Simon had selected an Agreed Value contract. This meant that if he ever had to take time off work because of sickness or injury the amount he would be paid was agreed in advance, not calculated based on his income at the time of the claim.
This was a relief to Simon as his surgery had been quieter than usual in recent times, and his off-work benefit was more in line with what he would usually expect to earn, instead of what he had been earning at the time.
Simon received this benefit until he was able to return to work three months later.
Although the names have been changed, this is based on an actual claim.
Source: Asteron Life LTD dated May 2010