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HMRC internal manual

Insurance Policyholder Taxation Manual

Fundamental concepts: what is sickness, disability and unemployment insurance?

This term covers a variety of forms of cover against the possibility of being unable towork. The self-employed, in particular, may choose to protect against the risk thatillness or disability may make it impossible for them to earn their living. Such policiesare known as ’PHI’, standing for permanent health insurance. They are also oftenknown as ’income protection’. More details on PHI policies, and on similarproducts such as employment protection, mortgage payment protection and creditor insuranceat IPTM6100 onwards.

PHI business is not life business but it is, along with the latter, long term business forregulatory purposes.

Further reference and feedback IPTM1013