Agreed Value

You will need to prove their income at time of application (depending on the amount of the monthly benefit), which has the advantage of showing what you will receive if a claim is submitted, regardless of any fluctuations. Unfortunately, an agreed value policy attracts a higher premium. This type of cover could be seen as more suitable for self-employed or occupations that see their income fluctuate.

Indemnity

Your income at the time of application will determine your monthly benefit and the premium you pay. However, when you submit a claim, you will need to provide your pre-disability income. Your payable benefit is dependent on your highest average monthly income over a defined period of time prior to your disability. This type of cover could be seen as more suitable for regular salary earners i.e. office workers.